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Key Variables in the Economy - Coggle Diagram
Key Variables in the Economy
Growth Rates
Spillovers
Small changes in growth rate have compounding effects later on
GDP
Per Capita
Real --- Per Capita
Puzzles of Growth
Why do rich countries have more factors of production?
Incentives
Institutions
Honest Government
Dependable legal system
Politcal Stability
Competitive and open markets
Why do some countries have good institutions?
History
Geography
Ideas
Culture
Luck
What makes workers more or less productive?
Tools
Technological Knowledge
Human capital
Organization
Saving and Borrowing
Life cycle theory
Saving
Dissaving
Borrowing
Supply and Demand of Money
Price of borrowing is affected by similar factors of any other good or service
Defining the Unemployment Rate
Rate fluctuates a lot based on a number of factors
Unemployment def
Non-institutionalized
Civillian
Adult
Looking for work
Without a job
Unemployed persons divided by the
labor force, expressed as a percentage