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Macro - Coggle Diagram

- - - - (Price of basket current/Price of basket base)100
    - - Substitude goods, new good, quality change
  - - - (Nominal/Real)100
- - - - physical capital(K)
        
        increase K/L, increase Y/L
      - human capital(H)
        
        increase H/L, increase Y/L
      - natural resources(N)
      - tech knowledge
    - - Saving&Investment
        
        reduce consumption = increase saving, trade off btw current or future consumption
      - Diminishing return&catch up effect
        
        adding input-->increase productivity , but adding more than u use will decrease productivity
        
        poor country will grow rapidly than richer country in the same amount of growth
      - Investment from aboard (stock, productivity, wages increase)
        
        direct ; capital owned/operated by foreign
        
        portfolio ; foreign money
        
        World bank ; -encourage capital in poor country -fund from rich country -make loans to less develop country -advice
        
        International Monetary Fund ; -set up after ww2 -economic distress
      - Education
      - Health&Nutrition -vicious circle; poor country are poor bc ppl are not healthy-->cannot afford better
      - Property right and political stability
        
        ability ppl over the resouces they own, court enforce
        
        political stability; lack of this will be threat to property rights -less incentive to save/invest domestic and foreign
        
        lack of this can cause -fraud -corruption
      - Free trade ; by gov policy and geography
        
        inward-oriented (มุ่งเน้นภายใน)
        
        -avoid interaction -infant-industry argument(tariff&trade restriction) -adverse effect on economic growth
        
        outward-oriented
        
        -integrate to the world -international trade -economic growth
      - Research and developmetnt ; knowledge is public goods
        
        -farming method -patent system (สิทธิบัตร)
      - Population growth