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HASS Macro Economics - Coggle Diagram
HASS Macro Economics
Unemployment
Unemployment Rate
The % of people who are actively searching for jobs but are currently unemployed
Australia's Unemployment Rate
3.9%
4 Types
Frictional Unemployment
Natural Frictions in the economy
Represented by qualified individuals with transferable skills who change jobs :
Shorter Duration
Examples
Working by contracts
After university and actively seeking work
Structural unemployment
Structural changes in the economy
Eliminate some jobs and create others which the unemployed are unqualified for
Longer Duration
Example
AI taking over machine jobs but creates more people jobs
Seasonal Unemployment
Unemployment due to seasonal trends
Periodic, Predictable and Plannable
Examples
Christmas Stores
Fruit Pickers
Adventure world with weather
Skying Jobs
Cyclical Unemployment
Contractions in the economy (Business cycle)
Difficult to predict
Examples
Expansion = Lower Unemployment
Contraction = Higher Unemployment
When a person who is actively searching for employment is unable to find work
Inflation
3 Types
Cost-Push Inflation
Cost to maintain businesses rise = Prices increase
Reasons
Raw materials get more expensive
Workers asking for more money
Land rent increasing
Demand Inflation
Higher demand and supply can't keep up
Reason
People getting richer (increased wages)
Printing Money
Governments stimulate the economy by printing money
Can be done by
Increasing number of notes in circulation
Increasing government debt
Letting banks make bigger loans
Hyper Inflation
Income and Wealth
GDP
Gross Domestic Product
Strengths
On way to measure economic growth
Weaknesses
Alone doesn't measure economic performance
Doesn't consider environmental and social impacts
GDP Per Capita
Strengths
Indication of the impact of economic growth per person
Weaknesses
Not consider cost of living
Consumer Price Index