National Economic Indicators Flashcards
(18 cards)
invisible hand
people following their own self-interest will make the best decisions for the economy bc they want to attract good business
belief of John Maynard Keynes
gov’t should step in to solve economic problems using fiscal policy
interest rates
cost of borrowing (renting the use of money)
unemployment
% of people without work who are seeking work
inflation
prices rise as % of GDP; an overall increase in prices and drop in purchasing power
durable goods
orders for items lasting 3+ yrs (ppl buy them when they feel good about the economy)
index
a basket of economic indicators
CPI
consumer price index; 80,000 finished goods’ prices are tracked
PPI
measures changes for the wholesaler’s view: tracks prices in wholesale products and intermediate goods
economic freedom
gov’t does not intervene in the economy (more libertarian); allows freedom of choice in jobs, businesses, investment, trade, use of time
avg income per household in the most free countries
42,500
some economic indicators…
GDP, real GDP per capita, interest rates, unemployment, inflation, sales of durable goods, housing starts, indices
jobless claims
claims to receive unemployment benefits
PCE
personal consumption expenditures; what businesses are selling & their prices (CPI surveys what ppl BUY)
GDP Deflator
price index that measures price inflation or deflation, calculated using nominal & real GDP
avg GDP per capita in least free countries
$6,000 (7x less)
avg incomes for lowest-earning 10% of most free and least free countries
most free $12,000
least free $1,200
life expectancy in freer/less free nations
80.7 years in freer nations, 64.4 years in less free nations (25% longer in freer)
