Economic Indicaors Flashcards
What are economic indicators?
Statistics that show how well the economy is doing and suggests what way it is headed
Name 5 economic indicators?
Inflation
Employment rates
Interest rates
Economic growth
National debt
2 causes of inflation
Labour costs increase
Cost of raw materials increase
How to calculate inflation?
Cost of living yr2 -cost of living yr1
——————————————✖️100
Cost of living yr 1
2 impacts of inflation
Jobs may be lost
Individuals can buy less
What is inflation?
An increase in the price of goods and services
What are employment rates ?
The percentage of the total labour force that is in work
2 impacts of high employment rates
Higher standard of living because of more disposable income
Increased revenue for government
2 impacts of high unemployment rates
Lower standard of living because of less disposable income
Decreased revenue for the government
What are interest rates ?
Interest is the reward for saving money or the cost of borrowing money
2 impacts of increased interest rates?
Standard of living is decreased because of less disposable income
More incentive to save
2 impacts of decreased interest rates?
Standard of living is increased because of more disposable income
Less incentive to save
What is economic growth?
The growth in a country’s output of goods and services over time
How to calculate economic growth?
Value of output yr2-value of output yr1
—————————————————-
Value of output yr1
✖️100
2 impacts of economic growth ?
Standard of living increases because of more disposable income
Increased revenue for the government
