/ 2. April
CIRCULAR FLOW MODEL
Output = income
MARKLTFORGOODSGSERVICLSt-FE%Fe.mn.io#exPenditures
, ansump
Labour HOUSEHOLD.SU
T Capital
Factor of production 1
Land
income
Wages
interest
rent
>
FACTOR
MARKET
<
Intermediate good :
a good Used to produced an other
good
e. car
g.
Steel
Aggregate Output economy as a Whole
↓
the is the GDP (gross domestic product )
Measure
of the
aggregate Output
, ⑤
is the Value in
GDP of final goods & Services produced the
economy during a
Production income
aggregate aggregate
=
given perioa ,
nominal GDP: Sum
of the quantities of final goods produced × their current price
€ Yt ☐
the normal GDP can increas when production or price increases
→
steeper Slope
real GDP :
Sum
of the quantities of final goods produced ✗ Constanz pries
Yt ☐
base
year has to be cnoosem , no inflation
" "
GDP at Current prices
INTERMEDIATE GOODS TRANSFER PAYMENTS
" "
GDP at Current euros
things that don't Count in GDP
" "
GDP interims of goods
FINANCIAL TRANSACTIONS USED GOODS
" "
GDP at conStart euros
" "
GDP adjusted for inflation *
black market is estirmated
negative GDP :
because
of crises like the oie crises in the 1970s / 1980s and the
depression in 2008
hedonic Model that
pricing idemtifies price Factors according to the promis that price
:
is determined both
by internat Characteristics
of the good being sold &
external factors ofFeeling it .
relativ price ratio of the price of a specific product in one periode to the Price
of the some product in some other periode
GDP : increase
of GDP -
> increate in Wealth :
technology , more Output product more to
Consumer )
health & medial bester
, Unermploymemt of people have for
: nurmber Who dort a
job , but
Cooking one
decrease of happiness
employment labour rate
unempeoyment
+ =
unemployment rate : U/ L
UMFRAGE
EU Labour farce
Survey (LFS) :
relies on interviews of a representative Sample of
householdS Weng month
pcrticipation rate : Labour Force to the totale population of working age (15-65)
discouraged Workers : those who give up looking for a joo
Why do we are about
unemsployment ? effect on their Welfare
-
'
human resources are not Used effizient
(waste of resources →
costly )
labour
shortages
:
employees have adifficult time Ranking ( not enough Candidate . .
)
Inflation :
Sustain ed rise in the general level of pnces
◦
inflation rate →
growth rate of the price level
allpricesal-oge.EC
◦ deflation :
Sustained decline ( reg . inflation rate) price level
◦ disinflation : inflation falls but still positiv e.
g. 2% →1%
HKP ( Harmonised Index of Consumer Price) pure Inflation : proportional increase in all
Measure
of the Cost of
eiuing pries &
wages
dort Occur
" "
-
economist believe the best inflation is between 1- 4% ~
Phillips Curve
1 Inflation
" " "" " """" " "" "
" " °" " " "" "" " "" " ⁿ""ʳ"
long-
nen PC
recessionaygap high Unempioyment & low inflation
✗ Fully employment
SPC
>
unermploymemt
CIRCULAR FLOW MODEL
Output = income
MARKLTFORGOODSGSERVICLSt-FE%Fe.mn.io#exPenditures
, ansump
Labour HOUSEHOLD.SU
T Capital
Factor of production 1
Land
income
Wages
interest
rent
>
FACTOR
MARKET
<
Intermediate good :
a good Used to produced an other
good
e. car
g.
Steel
Aggregate Output economy as a Whole
↓
the is the GDP (gross domestic product )
Measure
of the
aggregate Output
, ⑤
is the Value in
GDP of final goods & Services produced the
economy during a
Production income
aggregate aggregate
=
given perioa ,
nominal GDP: Sum
of the quantities of final goods produced × their current price
€ Yt ☐
the normal GDP can increas when production or price increases
→
steeper Slope
real GDP :
Sum
of the quantities of final goods produced ✗ Constanz pries
Yt ☐
base
year has to be cnoosem , no inflation
" "
GDP at Current prices
INTERMEDIATE GOODS TRANSFER PAYMENTS
" "
GDP at Current euros
things that don't Count in GDP
" "
GDP interims of goods
FINANCIAL TRANSACTIONS USED GOODS
" "
GDP at conStart euros
" "
GDP adjusted for inflation *
black market is estirmated
negative GDP :
because
of crises like the oie crises in the 1970s / 1980s and the
depression in 2008
hedonic Model that
pricing idemtifies price Factors according to the promis that price
:
is determined both
by internat Characteristics
of the good being sold &
external factors ofFeeling it .
relativ price ratio of the price of a specific product in one periode to the Price
of the some product in some other periode
GDP : increase
of GDP -
> increate in Wealth :
technology , more Output product more to
Consumer )
health & medial bester
, Unermploymemt of people have for
: nurmber Who dort a
job , but
Cooking one
decrease of happiness
employment labour rate
unempeoyment
+ =
unemployment rate : U/ L
UMFRAGE
EU Labour farce
Survey (LFS) :
relies on interviews of a representative Sample of
householdS Weng month
pcrticipation rate : Labour Force to the totale population of working age (15-65)
discouraged Workers : those who give up looking for a joo
Why do we are about
unemsployment ? effect on their Welfare
-
'
human resources are not Used effizient
(waste of resources →
costly )
labour
shortages
:
employees have adifficult time Ranking ( not enough Candidate . .
)
Inflation :
Sustain ed rise in the general level of pnces
◦
inflation rate →
growth rate of the price level
allpricesal-oge.EC
◦ deflation :
Sustained decline ( reg . inflation rate) price level
◦ disinflation : inflation falls but still positiv e.
g. 2% →1%
HKP ( Harmonised Index of Consumer Price) pure Inflation : proportional increase in all
Measure
of the Cost of
eiuing pries &
wages
dort Occur
" "
-
economist believe the best inflation is between 1- 4% ~
Phillips Curve
1 Inflation
" " "" " """" " "" "
" " °" " " "" "" " "" " ⁿ""ʳ"
long-
nen PC
recessionaygap high Unempioyment & low inflation
✗ Fully employment
SPC
>
unermploymemt
