Macronomics

Paraje pis y g s

in overtime

Menny
p

Macroeconomic objetivos
thevalue all
y

stable inflation 2 3 finlglspoduuli.am

low t
y period

stable
enginagiva
low economic
got

y p red bop ir a

low mephymet overtime

envy

member notworking

16 65

y working ye
able to work

willing

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j

u rate y polemplgel No
labor

farce

Y inequality low pong

Low

Sustainable la government
debt

Business treeline

cycle

up line

m got

Pp NI

Time

RDP Delire
very high

Boom

t.nl d RealGDP

voy pu

apatin likely high prices

Recovery
Trough slump

tren LDP

very low RDP output

k
tu

high

very p prices

inflabilikylow

Circular
flout Y

closed

no
gout

any

resoras

Fi

É
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Households

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ü

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i
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ti

import

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inventa

LEAKAGES INJECTIONS

tres

Gigantespulg

ipods M K put

I inventa
Swing

GDP

TAal value y al
final goals servios

in as in a period time

produced
any y
ayer

usually

GDP capita GDP valen

Highest IDP countries

per person

USA

Chin GDP

Japan population

bunny

IDP
fatally

apentina approach

output approach

income approach

Expenditure approach

method GDP which involves the

y calculating
X M
summing

values C I K out
y

GDP e C I t G K M
Tradebalance

Balance trade

y
Current account

Netexports

al

household

Consume spending by on final gli

Sperling mt property this is Il

businesses on capital goods

Investment
I spending by

spending on property

spending

Governut spending
by government demerically

l l l E

Sperling spending

Export X al exports min

Valmy
ftp.rt

Import m value all input

y

example

Components Value ball

C 19.4

I jo

6 11 2

X 3L

M 21

E 42k

6Pts 42 la

net exports I Iba

Net x 0 the country

y
Ty Natxo

is a net exporter

the is a net
county
importer

Output approach

method GDP which involves the

A
y

calculating summing

value
y

glsprdmedinueronmyinagiventimpei.d PE

ioQrolb pff Quiz Patty Quis

CARS 500 5 520 6 525 x 6

10 20 22

PIZZA 12 a

In

WATER 2 20 2 x 25 2 30

zig

Baseyear

pallo Q roll Quiz 012018

LARS 500 5 6 6

10 20 22 22

PIZZA

WATER 2 LO 25 30

3290

HEALY

GDP values which use the given

y inflationintranet

prices

nominal bop which don't take

you finterest

real GDP GDP values which take into account the



Gerty inflata

Economic growth

19.3

2016 217 Y noo

2017 72018 3280 327 100 0.31

327

overtime

Y real GDP

NominalLDP Real GDP GDP Aflato

Yew

2016 2710 2780 100.0

3431 105.0

17 327

2018 346k 3280 105.6

nominal GPP

GBP deflator X 100

real Gpp

nominal UP

Real GDP joo

GDP delator

PPP GDP Ppp values are

purchasing power parity

GDP values
for the cost
y inch

adjusted living

EDC's GDP values than

 v e

y y values y

their GDP as the cost living is Iw A

art
y
has GDP
vez
value C LDP

with a
high y living ppp

County

vahos are adjusted so

that county to county comparison

Figuras

con te mate

GDP calculations

AH

1 t It Get X M GDP

125 46 35 t 12 17 LO billion Ftl

3 a 2001 4243 billion to

ampare information regarding

2002 9277 billion population changes wld be

necessary

b Th base 2016

gais

VI
20.2 billion LU

g q

1100

qq.ge

201

20.7 xp 20.7 billion LU

100.0

4 q y yo 21.4 billionth

101.3

2
22.6 21.0 billionth

y yo

107.6

22 y yo 21.5 billionth

103.7

21.9 to V 6 billion La

d Nominal GDP T from

but real GBP1 Jon 21 tt 21.0 billion Lkl

This is because then was inflation



nominal GDP values to

ayy
vise
y
era the

though

caning
fell

output

the real GBP1 the

e Nominal GDP can

for y

are falling prices deflation

1 Inn 16,833.33 LU
20.2 billion La

8 20 5

LU

1.21mn 17,107.4

ll 20.7 billion La

171 1.12mn 17,540.98 LU

21.4 billion La

l 17,073.17 LU
21.0 billion La 1 23mn

Y 21.5 billion La 1.27mn 16,929.13 LM

g Real GDP un t her rabbi capital de

to population

rising

Encore road

app

E total inome from fans

predation

Lane rat

Labor ayer

Capital internet

Enterprise F

NI national income
gross

GDP t received abroad sent abroad

money from money

most likely hare a higher GNI compared to their

LED will

GDP as abroadthen
money from

receive move

they

ASAD aggregatesupply al aggregate donad

yfindglsprodmdinareu.my at dijera

The total quantity

price lends

AS Aggregate supply is

Price

level Upward sloping because

PPL TI

Ateris pailas

esperialfortigprodutin

o 7

Real LDP

AS

Shirin

M AS

Price n
AS MAS

lend e s Al AS

s
LAS

A AS

Real LDP

Fotos aputing AS

Subsidies P subsidies MAS tusubsidies LAS

P indira tan LAS Lindirattan TAS

Indirect taxes

Ds in the cost production

y
natural discute

shock

Supply ey

farrable weather condition

WN

demand

AD aggregate

demand
total y final gls

quality
C TITO K MD

PL

at a
gira
K

API Ct It Gt M

PL

AD

RIDP

PAD

PL AD AD

LA

AD ADS

AD AD

o RIDP

what inglesas end the

y
I

f
J

Asad AD

n As

r Where ASI AD is the

Macroeconomic equilibrium

II the the Plane RDP

y

1 be fond

the economy can

I as

Y RAP

in Ll It

a shift in One the curves will affectthe macroeconomic indicator

For rapte XP

R n as y

ADM M Xi a

component AD

1 1 AD P
I

I I
Mi

i PIT inflation
µ

Y Ya Rupp Yt economic growth

Ut


How inflatón con occur in an

envoy

Demon Cost push inflation

pull inflation

Aba

Pl r AS n AS
n

y y

iii I

TE.FI

11

am t
l
ll

l
Y Y
Y o
I
P

Rupp

RDP

PPL PROPP IU TU

IR

STAGFLATION

canselbyartinAD Y

caused
by atinas

Disinflation

PPL overtime but at a two then

Disipation

the previous tire period

ey July
222 10.8

222 10 Si

Ayut

Calculating inflation

Create basket Uk 80,000g's

I a
y
goods

t.gl

Assign weight

E El E

El

y's weight Por P P

12 13 11

t shirt 3 10 Raj

petrol 10 2 3 3 2

sandwiches 15 3 p 3

95 126 129 98

3 Calculate basket
forgivesyen

voley

weight xp

4 Convert basket values into index Consumer price inda

CPI

value basketingiverger

y bostutin base
l

Value year

2017 base ya

2017 100.0

9ft y too

infla

i
elos 132.6

EL

disinfldim
Y

2019 129

o 135.8

95
Lydia

Lovo l
Yf
x 100

Calculate inflation rate

LPI ya_LEY eso

CPIyri

32.61

2017 V18 inflation

V18 alg 2.41 inflation disinfection

2019 2020 24 deflation

Basketisn't

Basket reflects

average
consumo ungida weight

which isnt

anthammugar

most money

y added

f y

2nd hadgls

illicit drugs

geographical basket chuzas

Ajenas from county to

any

COSTS OF INFLATION

I valee tpwdmiyp.ru IL LAD top

y

savings
or

tacos t.gl LI

Purim

I real Y

les positive tradebalance

Yt

negative

es more

L AD

IC

Consumer
confident dejaren consptin

Business
confidence II LAD

the was the prices when Hype inflation

Mesa hosts

y changing
occurs

Shoe leather hosts the cost t

y

consumen

lower prices time

finding

10 mark questions

inflation

Define

investment

denadapullinflation TAD
Diagram
post Coria

PPL IU Propp

Impacto X t subraya

I t tu bus
Input

m
afiche

good dyrtion

Deflation

TAS IPL TDP Iu

causes

LAD IR HDP tu

bad defolia

bad deflation
y
Consequences

TU Acyclical 4

TRIPP

LAD IPL ITR TI

have relating
Firms who input to

produce

Con LAS

high

back

Borrowers
pay pelotily more

lower economies sede

y

time where at least

SHORT RUN A
peri.ly is

one input fixed

RUN A period time where ah

Lamb yvariable

inputs are

SRAS a LAS

pl p

7 7

Rupp

MDP

PPL PROPP PPL

OROD .PT

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margin
when LRAS is perfectly

inelastic

is the LRAS vertical

Why

LAS SRAS

SRAS

R n

tiii

TR no

1 1
P

T I I

AR

Y Y RDP

AD SRAS LRAS

PL Ph Y Y

PAD PPL to Pla Cipation

PRD P t Y fea growth

PPL from Pl Ph t in cost

y pudin

overtime

SRA I to SRA

PPL t Pls it RIP to Y

OUTPUT GAPS

no auptgp I

CA

Pl r SMA

pl LR macroeconomic
y

YF RDP

Full aplymut natural rate funeral y

Potential output

aplating J
 y
reunir t.gl

aputgaplinthinad Negative output

Positive
y

A sus M

pln n sus

pl

p pi

y y

1 1

1 1

P µ

o
Y Y o Y Yo

RDP RDP

Y Yp Y Yp

Output
gp.it Yo Output
gap Yp_Y
d ratas naval retef

Urape a notarte

ya

UNEMPLOYMENT

thoseuth.ntw

unemployed

seckiyenpbym l

ywkiyyelb.tt

unemployment Gmbh xp

rate tarta

unemployed tepl.ge

Typographymat

Seasonal muplymet U which avise tu to seasonal

flutilin in D for labor

ski instrut farmers

Tridimal U due to time looking for al

imply fin aplymt

between contrasts

migrante somebody

U which arises due to downturns

in

Cyclical unemployment

demand deficit UD business de

y

LM SRA

PL

1 LOVED
y

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Y

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y

D s in deral letra skills

labor market rigidities min wage

tradeunion power

labor laws

berja but out

blackouts

registed os esplyd

janijim

rate Measure

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between
distinguish
well being

I desahitéis

me

pa tim

junio geographic warmly a

undersigned workers who de not

dismayed dijeras maximise their

workers na aaaaa human capital

for

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foreign

g working as a

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a without paid

aplymet
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os

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who wants
to wk FT


ECONOMIC GROWTH

short run Long run

Y production possibilities

TROOP overtime

lol portatil output

LLA SRAS LA UA

pl pl

tiiii
Iii

Y RDP y

a Yi Yu

RDP

TRAS

PAD

A A AL

Mi pl

pl

p I

nit y

lo I AD

1 y

YY
o

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n n

inferir

cogí go.rs

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Pp

Pp Ppc

capitalgo.to nerdgood

UAT

PAD C I L A M To P PPP o

Igualito
al orguttyff.us

PSRM taxes

subsidies

costs palentina p invest in technology

y

P invest in Rtb

Consequences economic
y growth

Y DISTRIBUTION

bini

Tu groth X necessity

then Ycopita and the bini

Kuznets suggested the following relationship

Howe

Kuznets lowYnations focus on primary set

y riddle
wue n

Very

pollution where Ys we lowfor

litany
Cii
all Yinequality is tu

MERCY In middleY cambios productiontakesplace

LEDCI Y

across
afecto with por ir primagadrod

in toting then is a high

income
capta gin

In MEDI's most production occur in tertiary

sector where

ENVIRONMENT dirtudy all incomes are high

i Gini is low

Pannonia guth Y and then n t in cabra emissions

KUZNETS CURLE

low Ynations produce inprimary

sentir where cabosemissions welow

Col As Counties industrialist emissions Y

emissions asthe sundaysectoryou

percapita wealthierenromies taltoemitless

MEAL percapta as tertiary industry y me

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overenviarladange

serondry

Me green energy we prioritiesfor

incurre
rider notions

capta


STANDARDS OF LIVING

human development ida

Measured MDI

using

accentgls

GDP CAPITA

MAE

YRSOFSCHOOLING LIFEENETANCY

ya µ

THAI

Tammi growth generally speaking

the relationship is stronger for lou

middle
Yadin

Mou has economic

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affected environment Yinequality I started living

this math kinds prediction

Does

AD TI X D

DEMAND SIDE POLICIA

Policies which sure control AD in the annoy an ll MDP

T.t

Monty poli

Fisch policy Fed

Banky England

letal bank

decid
y y ELB

Monetary Policy

Ms

O's in interest rate i al money supply

AD

to influence

sing

t.IE

market

Mony

a MI MI

I a

ti.IM Md
ti IM

QM QMy

ajay

Ms

Contilling

A's

in minimum reserve requirent

Y regiment from 10 ti 20 cantatriz

d tuit ti expansion

Opernanket operating NEXT CLASS

quitative amig

which takes inflation into acont

Real rate irate

rate 5

inflation ti

red ir de II

nominal irate

rate which don't take inflation into

account

Fiscal policy

to cont AD

b al taxation

A's in

current expenditure doy te dy runny way gout

ey

capital expenditure hospital fronds airport

ey

are not gout sperling

trasga transfer

payments

directtan

Gort revenue taxation Es indiret tan

Sale gls


privatisation

Expusionay final piling Y C and for taxation

f t

taxation
f b ad

final plig

Catatinay

of

Sketch a Keynesian diagram al PPC to show th the ECB's policy

fat y

ÍERE

bank

for government

commercial bah

regulates

decidemonetary policy

Commercial bank es allow peopleto deposit

money

Y mala locus

FALLOUT MaNEARpactv

ADVANTAGES ADVANTAGES

DISADVANTAGES DISADVANTAGES

Keynesian multiplier 6 X I c

y
autonomos intend Injection in Card into the
ftp.g

economy

a
Split
split circula y 4

PAD to ADD

al overtime
after shyt

in AD to ADS due t

induced

As speeding

O RUDI

iklihilyswiyetnYyy

Induced spending depedsm.es

Ydirettos

any
liklih.ly spy
Cofid indignas

marginal propensity to consume

npc

sure

Mps

to be tan

MPT

n t input

Mpm

Boom Recession

MPC 05 0.1

01 05

MPS
Oil o

MPT

MPM 02 01

1 1

GDP

Total Din injetime Fmp

Y

antinomias Keynesian

Sperling multiplier

Doom Recession

2M 16 2M 16

Din GDP Lex Ine dinbbp 2natxf.at

2
2.2in
KM

KIM 1Y

induce
spending
Ine

antrom 2
induced spending 0.22in

1L PL

mm
Éi

o MDP o MDP

MACROECONOMIC INVITATION

I Decide on a county to

investigate

2 Country background

3 Using a
mauroesoramic data describe
cachythfituig

tras

GDP F LOgearperiod

patina
describe trends

Matin inflation

disipan use diagrams to aplainary importar interesting

replymet to macroeconomic indicators

1
charges

types regionaldengyhic

Mueras

business ASAD PPC diagrams explain

4 Using cycle likely

output Karras
gaps

ii

5 the impact the environment

Analyse
femenil youth on

b Evaluate the use demart sidepolicies in recent in yourcounty

y years

7 Evaluate the use recent side policies

y supply

Policies whim serve to TAS

Supply side policies

Con P productive potential

p

Keynesian
Yicing monetarist

INTERVENTIONIST MARKET BASED

Focus on the implementation Focus on the well functioning

to T Y competitive markets

Y government policies

potential output

Human

capital investment Encouraging competition

education privatisation

Training t

I labor produtinty deregulation

Y loor enterprise

Opp Ust

overtkilled laborforce strutt a

time lays

Improvehealth
are

Labor market reforms

Physical capital investment

intrastate t trade union power

Iwerphynt benefits

remove Min

wage

Industrial policies Incentive related policies

Support
for infantindusties I coroprotion tres Y Imjin

She's

support
pr t I has

TILDAS

Ycompetition as it's cheaper to

palme

effectiveness depends on poder confidence

I got were t budget