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Economic Variables - Coggle Diagram
Economic Variables
Growth
Saving
Public Saving
Private Saving
Law of Diminishing returns
Investment
Catch-up Effect
Tied to Technological Knowledge
Foreign investment
Health
Education
Tied to Human Capital
Property Rights
Political Stability
Free Trade
Research and Development
Tied to Technological Knowledge
Growing Population
Can affect each factor of production
Financial System
Markets
Bond Market
Stock Market
Information Efficiency
Random Walk Theory
Market Irrationality
Intermediaries
Banks
Mutual Funds
Supply and Demand for Loans
Shift with
Savings incentives
Investing insentives
Productivity
Key Variable Related to GDP
Factors
Physical Capital
Human Capital
Natural Resources
Technological Knowledge
Finance
Value of Money
Shifts over time
Present value
Future value
Risk Management
Risk Aversion
Creates Market for Insurance
Ex: Unemployment Insurance
Diversifying to Reduce Risk
Risk/Return Tradeoff
Unemployment
Always in Existence
Frictional Unemployment
Structural Unemployment
Minimum Wage
Creates a Price Floor
Disturbs Equilibrium Labor Quantities
Contrasted to Efficiency Wages
Increase Worker Health
Decrease Worker Turnover
Increase Worker Quality
Increase Worker Effort