Unit 1 mind map
- Created by: hellowinkwink
- Created on: 08-03-14 16:35
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- Macroeconomics
- 4 main economic objectives
- Low unemployment
- Government aims to minimise number of unemployed people
- Price stability
- Low stable rate of inflation. Inflation target is 2% (measured by CPI)
- Balance of payments
- Record of flow of money in and out of economy
- Economic growth
- Increase in productive capacity of economy. (Measured by increase in real GDP)
- Low unemployment
- 2 other objectives: income distribution and the environment
- Circular flow of income
- Injections: addition to circular flow and increase in national income
- Leakages: reduction from circular flow and decrease in national income
- Injections > Leakages = EXPANSION
- Injections < Leakages = CONTRACTION
- 4 main economic objectives
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