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Based on Article 1 of Law No.28 of 2007, tax is a mandatory contribution to the state that is owed by an
individual or entity that is compelling under the Law.
Individuals or bodies do not feel rewards directly. Taxes are used for state needs to create maximum
prosperity of the people.
Retribution is a levy imposed on the community or residents who use the facilities provided by the
State. In other terms, levies are regional retributions as payments for granting permits or certain
services provided or provided by the Regional Government for personal or agency interests.
After carrying out tax payments, the community cannot immediately enjoy the benefits. Tax collected is
used for public purposes. The public can feel the benefits of taxes in the form of road improvements,
construction of public facilities, and free education.
Meanwhile, people who pay retribution can immediately enjoy the benefits. For example, if you pay
parking money, that person can leave the vehicle.
2.Sustainable development is development that meets the needs of the present without having to
reduce its ability to meet the needs of future generations. Sustainable development must pay attention
to the environment and environmental sustainability so that the quality of the environment is
maintained. Environmental preservation that is not maintained, will cause the carrying capacity of the
environment to be reduced, or even be lost.
3.General equilibrium in economics is a perfect state when demand and supply are
equal to each other
4.Gross Domestic Product
Gross domestic product is the most basic indicator used to measure the overall health and size of a
country's economy. It is the overall market value of the goods and services produced domestically by a
country. GDP is an important figure because it gives an idea of whether the economy is growing or
contracting.
Because it is subject to pressures from inflation, GDP can be broken up into two categories—real and
nominal. A country's real GDP is the economic output after inflation is factored in, while nominal GDP is
the output that does not take inflation into account.
Calculating GDP includes adding together private consumption or consumer spending, government
spending, capital spending by businesses, and net exports—exports minus imports.
While GDP limits its interpretation of the economy to the geographical borders of the country, GNP
extends it to include the net overseas economic activities performed by its nationals.Gross national
product is another metric used to measure a country's economic output. Where GDP looks at the value
of goods and services produced within a country's borders, GNP is the market value of goods and
services produced by all citizens of a country—both domestically and abroad.
GDP pengeluaran
X = Net Exports
M = Net Imports
Income approach
5.Price elasticity of demand measures the responsiveness of demand after a
change in a product's own price.
How much does quantity demanded change when price changes? By a lot or by a
little? Elasticity can help us understand this important question.
We use the word "coefficient" to describe the values for price elasticity of demand
1. If Ped = 0 demand is perfectly inelastic - demand does not change at all when
the price changes – the demand curve will be vertical.
2. If Ped is between 0 and 1 (i.e. the % change in demand from A to B is smaller
than the percentage change in price), then demand is inelastic.
3. If Ped = 1 (i.e. the % change in demand is exactly the same as the % change
in price), then demand is unit elastic. A 15% rise in price would lead to a 15%
contraction in demand leaving total spending the same at each price level.
4. If Ped > 1, then demand responds more than proportionately to a change in
price i.e. demand is elastic. For example if a 10% increase in the price of a
good leads to a 30% drop in demand. The price elasticity of demand for this
price change is –3
Monetary / fiscal policy. e.g. what effect does interest rates have on the whole
economy?
Reasons for inflation and unemployment.
Economic growth
International trade and globalisation
Reasons for differences in living standards and economic growth between countries.
Government borrowing
The macro diagram is looking at Real GDP (which is the total amount of output
produced in the economy) instead of quantity.
Instead of the price of a good, we are looking at the overall price level (PL) for the
economy. Inflation measures the annual % change in the aggregate price level.
Instead of just looking at individual demand for cars, we are looking at aggregate
demand (AD) – total demand in the economy.
Macro diagrams are based on the same principles as micro diagrams; we just look
at Real GDP rather than quantity and Inflation rather than Price Level (PL)
Equilibrium – Disequilibrium