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Text Elements
Unemployment
Labour force = Employed + Unemployed
GDP Gap =
CPI
CPI rank:
Inflation rate:
Housing Food Household operations Healthcare Transport Clothes Entertainment Alcohal & Tobacco
- 26%
- 16%
- 13%
- 5%
- 20%
- 6%
- 11%
- 3%
Employment rate =
Unemployment rate =
Inflation
Problems
Societal
Economic
Environment
- hoarder
- inflation psychology
- protests
- insurrection
- worse quality of life
unable to plan for future
-
less exports
-
higher unemployment
-
more reliance on welfare
-
decreased investment
-
overuse of natural resources
-
pollution
-
disregard for environmental protection laws. desperate times desperate measures
Hidden unemployment:
- Discouraged workers
- Underemployed workers
We should count hidden unemployment because it provides A less “prettied up” version of the unemployment rate.
Social costs:
- Lack of confidence
- broken marriages
- crime
- black markets
Automation:
- replaces blue and white collar work
- people will have to learn new skills
- shorter work weeks
- less and more competitive positions
Common Good:
- economic policies should benefit the most people.
- common good are things that benefit all
Demand-Pull: Too much money, not enough goods and services Cost-Push: Production costs rise, more expensive products
Hurt and Help:
- borrowers and those who need to repay loans are hurt
- lenders are benefited
Indexing: adjusting fiscal policy based off CPI
CPI limitations:
- weightings will not remain accurate over the years
- changes in basket of goods. smartphone just added
- certain cultures do not buy white bread or pork
Deflation: Negative inflation. Prices are being lowered. Prices do not accurately measure output
AD / AS
Expansion
Peak
Recession
Trough
Real GDP
Time
Business cycle
CPI ($)
Real GDP ($)
AS
AD
Equilibrium is @ full employment
Factors that shift AD:
- Business cycle
Factors that shift AS:
- Price change of inputs
- More/Less inputs
- Efficiency change
Tight money policy:
- Interest rates high
- Harder to gain credit
- less money supply
Easy money policy:
- Interest rates low
- easy to gain credit
- more money supply
Monetary policies
- Change government spending
- Change taxations
- automatic stabilizers(welfare)
Fiscal Policies
AD
CPI ($)
Real GDP ($)
Unemployment
Labour force = Employed + Unemployed
GDP Gap =
CPI
CPI rank:
Inflation rate:
Housing Food Household operations Healthcare Transport Clothes Entertainment Alcohal & Tobacco
- 26%
- 16%
- 13%
- 5%
- 20%
- 6%
- 11%
- 3%
Employment rate =
Unemployment rate =
Inflation
Problems
Societal
Economic
Environment
- hoarder
- inflation psychology
- protests
- insurrection
- worse quality of life
unable to plan for future
-
less exports
-
higher unemployment
-
more reliance on welfare
-
decreased investment
-
overuse of natural resources
-
pollution
-
disregard for environmental protection laws. desperate times desperate measures
Hidden unemployment:
- Discouraged workers
- Underemployed workers
We should count hidden unemployment because it provides A less “prettied up” version of the unemployment rate.
Social costs:
- Lack of confidence
- broken marriages
- crime
- black markets
Automation:
- replaces blue and white collar work
- people will have to learn new skills
- shorter work weeks
- less and more competitive positions
Common Good:
- economic policies should benefit the most people.
- common good are things that benefit all
Demand-Pull: Too much money, not enough goods and services Cost-Push: Production costs rise, more expensive products
Hurt and Help:
- borrowers and those who need to repay loans are hurt
- lenders are benefited
Indexing: adjusting fiscal policy based off CPI
CPI limitations:
- weightings will not remain accurate over the years
- changes in basket of goods. smartphone just added
- certain cultures do not buy white bread or pork
Deflation: Negative inflation. Prices are being lowered. Prices do not accurately measure output
AD / AS
Expansion
Peak
Recession
Trough
Real GDP
Time
Business cycle
CPI ($)
Real GDP ($)
AS
AD
Equilibrium is @ full employment
Factors that shift AD:
- Business cycle
Factors that shift AS:
- Price change of inputs
- More/Less inputs
- Efficiency change
Tight money policy:
- Interest rates high
- Harder to gain credit
- less money supply
Easy money policy:
- Interest rates low
- easy to gain credit
- more money supply
Monetary policies
- Change government spending
- Change taxations
- automatic stabilizers(welfare)
Fiscal Policies
AD
CPI ($)
Real GDP ($)
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