Tran Hoang Ha My

2011820208 Actual economic

IC
ECONOM
growth
Type of growth the annual

GROWTH
percentage increase
in national output,
Potential economic which typically
growth fluctuates in
the rate at which the accordance with the
MA OVE
economy would grow if trade cycle.

CR RVI
all resources (people
and machinery) were
DEFINITION Trade Trade
Objective OE EW utilized
F deficits surplus
PO CON OF
FACTORS
Achive economic growth,
O record of a A trade deficit A trade surplus
LIC OM CE NT
control price inflation, country’s occurs when the is an economic
N

Y IES transactions with value of a measure of a
LA YME
full employment, a Increased consumption
Investment the rest of the country's imports positive balance
balance between expots PROS Lower unemployment
anf imports
Higher Per Capita Income
Higher living standards
Natural resources A
B PA
world exceeds the value
of its exports
of trade where a
country's exports

Welfare provision Capital
exceed its
Macroenviromant Inflation Labor imports
policy Current account deficit

Determinants of CONS Environmental costs Technology

The policies and Income inequality
business activity actions government Structural unemployment
External trade
takes to control Disease of affluence

Overall economic policy economic issues

The government of a
Industry policy country with a balance
Environment anf GOVERNMENT of payments deficit will
TARGET

Chaper 3: The
usually be expected to
infrastructure policy take measures to reduce
Social policy or eliminate the deficit
Foreign policy

Marcroeconomies
environment
Fiscal policy

Monetary policy MO FI
Use money NA SCA ENT
Aims to manage supply, interest TA L A YM Consequences Government
RY ND O
PL
aggregate demand rate, exchange options
in the economy rate or credit PO M - Loss of output
LI E
UN
to contrl - Loss of human capital Spend money directly
CY - Innequalities in income Encourageing private
Moderate Galloping Hyper Exchange rates distribution sector growth
Option Money supply - Soocial costs
Inflation Inflation inflation DEFINITION Encouraging
Stimulated Affects price of a - Increased burden of tranining
TYPE the prices of the prices of the rate of increase in money
goods and goods and increase is INFLA demand = incr
supply will raise country's export The condition of welfare payment Offering grant
service rise at service increase extremely high, TION exp and reduce prices and incomes a worker being assistance
Encouring labour
a single digit at two-digit or more than 100% tax out of work
rate annually three-digit rate per year Reduce demand = Restricting trade
per annum Credit controls looking for a union


incr tax and job but unable

Demand DEFINITION reduce exp Interest rates Restriction on
pull factors bank lending to to find one Type
CAUSE Increase in Incr exp and Assumes a
Cost push factors relationship reduce demand Real wage
Import cost factors price hight tax between interest unemployment
Expectations create it levels. Reduce exp and rate and Fritional
Increase in the money supply Base on RPI, reduce tax expenditure No. unemployed x100% Seasonal
Structural
CPI,RPIX or Rate= Technologycal
Total Workforce Cyclical
RPIY
Redistribution of income and wealth
Balance of payment effects
PROBLEM Uncertainty of the value of money
Price uncertainty
Resource cost of changing prices
Hamful to growth and invesment