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MEASURING ECONOMIC GROWTH - Coggle Diagram
MEASURING ECONOMIC GROWTH
it's the government's job to manage this, supaya
price gak naik terus
make sure that country's output (GDP) grows
people have jobs
When measuring the performance of an economy, some of the criterias are...
how much is being produced by a country?
the more a country produces, the better economic performance will be
are the resources used perfectly and maximized?
COUNTRIES
BASED ON ECONOMIC PERFORMANCE
LEDC
: Less Economically Developing Countries
MEDC
: More Economically Developed Countries
BASED ON SECTORS
PRIMARY
: Nature based, biasanya agricultural, fishing, dll. Biasanya di negara2 yang LEDC
SECONDARY
: manufacturing, converting raw materials into goods
TERTIARY
: service giving or technology based
EMPLOYMENT AND UNEMPLOYMENT
EMPLOYMENT
people who work at least 1 hr a week
get paid
UNEMPLOYMENT
Menurut ILO
people who want a job
without a job
available to work ASAP
people out of work, tapi udah dapet kerja, tapi belom disuruh kerja
TYPES
CYCLICAL
SEASONAL
STRUCTURAL
VOLUNTARY
FRICTIONAL
HUBUNGANNYA SAMA GDP
GDP: salahsatu cara yang dipake untuk measure economic growth
GDP itu how much a country can produce in a year
kalo unemployment rate tinggi, otomatis nggak ada yang produce goods & service, dan GDP rendah. jadi otomatis juga economic growth berkurang
IMPACT
GDP turun
poverty
government spending meningkat
consumer and business confidence menurun
tax revenue menurun
GDP
Gross Domestic Product
total amount of goods and service produced in a year.
made out of consumption, investment, government spending, and nett export
TWO QUARTERS OF NEGATIVE GDP IS RECESSION
GDP PER CAPITA
GDP/ poulation
more GDP -> more national income -> living standard tinggi
TAPI, kalo living standard tinggi artinya cost living standard juga tinggi, jadi wages tinggi, dan kalo wages tinggi companies bakal PHK beberapa employee -> menyebabkan unemployment
INFLATION
raise of average prices
purchasing power menurun, itu artinya lagi inflasi
sebenernya ada rate normalnya, 3-5%
kalo diluar itu ya bahaya, ga bisa kekontrol, itu yg negative
TYPES
Demand pull
cost push
ini karna cost business naik
cost business naik bisa juga gara-gara wages naik
wages naik juga gara-gara kebutuhan sehari-hari harganya naik
Sebenernya GDP ga ada awal & akhirnya
soalnya pas harga barang naik -> wages naik -> harga naik lagi -> wages naik lagi -> unemployment -> GDP turun -> country'es economic growth turun
EMANG INFLASI BURUK?
ga juga, karena sometimes pemerintah trigger inflasi supaya meningkatkan produksi goods &service
kalo ada kenaikan harga, pebisnis bakal lebih termotivasi untuk produce more goods, dan akhirnya GDP naik, living standard naik dan economicnya growing
IMPACT of UNCONTROLLED INFLATION
price naik
wages naik
export menurun, negara bisa jadi defisit
unemployment karna salary naik, jadi bbrp company PHK bbrp pekerjanya
price list berubah-ubah tiap beberapa waktu yang singkat, companies jadi spend too much money on their advertisement cost
shoe leather cost
uncertainty to invest
consumer and business confidence decreased -> reduce aggregate demand -> economic growth reduced