Macroeconomics performance indicators Flashcards
What is economic growth
How fast a country’s GDP is rising. GDP is the value of all the output made in a country in one year.
What is recession
When a country’s GDP is falling i.e. if GDP growth is negative.
What is unemployment
the measure of the percentage of the labour force that is not in work
What is inflation
A measure of the percentage of how quickly prices are rising
What is deflation
Occurs when the average level of prices is falling.
Current account balance
An indicator of our trade performance in selling exports and buying imports. A deficit means that we are spending more on foreign imports then we are by selling exports
Interest rates
The cost of borrowing money or the reward for saving money.
Exchange rates
The cost of one currency expressed in terms of another currency.
