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UNIT 5: RELEVANT MACROECONOMIC INDICATORS - Coggle Diagram
UNIT 5: RELEVANT MACROECONOMIC INDICATORS
1.1 GDP and Economic Growth
GDP
Value of final goods and services
Measures economic size
Calculation
Production
Expenditure
Income
Economic growth
Increase in real GDP
Higher production
Employment and income
Factors
Investment
Education
Technology
Productivity
Economic stability
Limitations
Does not measure quality of life
Does not measure inequality
Does not measure environmental impact
1.2 Inflation and Purchasing Power
Inflation
General increase in prices
Reduces purchasing power
Measurement
Consumer Price Index (CPI)
Effects
Lower purchasing capacity
Higher cost of living
Affects savings and investment
Greater uncertainty
Control
Monetary policy
Fiscal policy
Social protection measures
1.3 Unemployment and Types of Employment
Unemployment
People without work
Looking and available for work
Types of unemployment
Cyclical
Structural
Frictional
Seasonal
Types of employment
Formal
Informal
Full-time
Part-time
Self-employment
Remote work
Platform work
Impacts
Loss of income
Inequality
Poverty
Loss of skills
1.4 Trade Balance and Exchange Rates
Trade balance
Exports
Imports
Results
Surplus
Deficit
Exchange rate
Value of one currency against another
Regimes
Fixed
Floating
Managed
Effects
Exports
Imports
Inflation
Foreign investment
Businesses
Currency risk
Pricing
Financial hedging
1.5 Fiscal and Monetary Policy
Fiscal policy
Taxes
Public spending
Government investment
Expansionary fiscal policy
Increases spending
Reduces taxes
Contractionary fiscal policy
Reduces spending
Increases taxes
Monetary policy
Money supply control
Interest rates
Price stability
Expansionary monetary policy
Lowers rates
Stimulates credit and consumption
Restrictive monetary policy
Raises rates
Reduces inflation
Coordination
Economic growth
Price stability
Fiscal discipline