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MACROECONOMICS - Coggle Diagram

- - - - Government Spending
      - Net Exports
      - Investment
      - Consumer Expenditure
    - - The interest rate effect
      - The international effect
      - The wealth effect
  - - - Definition - Total output of a country supplied in the period when prices of factors of production have fully adjusted
      - Shift in SRAS
        
        Change in taxes on firms
        
        Change in factor productivity./quality of resources
        
        Change in price of factor of production
        
        Change in the quantity of resources
    - - Definition - Total output of an economy that will be supplied when there has not been enough time for the prices of factors of production to change
      - Shift in LRAS
        
        More women entering the labour force
        
        Net investment
        
        Increase in retirement age
        
        Net Immigration
        
        Discovery of new resources
        
        Land reclamation
    - - The Cost effect
      - The misinterpretation effect
      - Profit effect
- - - - Definition
        Individuals or organization that impact the economy.
        (Consumers, producers and/or influencers of capital markets and the economy at large)
      - Major Economic Agents
        
        Households/Individuals
        
        Firms
        
        Government
        4.Financial Sector
    - - An economy that is involved with other economies
        (international trade)
    - - An economy that is involved in trade with other economies
    - - When the level of injections = the level of withdrawals
        (I + G + X = S + M + T), circular flow is balance
        When the level of injections = the level of withdrawals
        (I + G + X > S + M + T), national income will rise
        When the level of injections = the level of withdrawals
        (I + G + X < S + M + T), national income will contract
      - Leakage - withdrawals from the flow, reduces the flow of income
      - Injection - additions to the circular flow of income, increases the flow of income
- - - - Definition - GNI + net transfers of workers income to their relatives to and from other countries
    - - Definition - Firms that operate in more than one country
    - - Measures of the total output (income and expenditure) of an economy
      - Types
        
        GDP
        
        Total Output produced in a coutnry
        
        The income method
        
        Output Method
        
        Expenditure Method
        
        GNI
        
        GDP + net income from abroad
        
        Compensation from employees
        
        Net property income from abroad
    - - Definition - Prices paid by consumers, take into account indirect taxes and subsidies
    - - Definition - Prices changed by producers before the addition of indirect taxes and the deduction of subsidies
    - - Total Spending on capital goods
    - - GDP - Depreciation
    - - Gross National Income - Depreciation
    - - Additions to the capital stock
    - - The value of capital goods that have worn out or become out-of-date