OJA 3 - Economy, GDP, Economic Growth Flashcards
(4 cards)
What are the key goals of modern developed countries?
- Ensure economic efficiency
- Keep economy growing over time
- Limit unemployment / ensure optimal employment
- Freer trade
- Keep prices stable
- Optimal income distribution
What are key macroeconomic indicators in Czechia?
GDP, prices, labour market, public finance, foreugn investments, currency exchange, interest rates
What is a GDP?
- It means a gross domestic products, also kniwn as economic output
- It is the value of all final goods/services produced within a country’s borders in a specific period of time (a year)
Why is GDP important?
- Because it tracks the health of the country’s economy,
- It is an indicator of growing / declining economy = economists can use it to determine whether an economy is growing or experiencing recessing
- also used by investors to make invesments (e.g. The economy is bad, that means lower earnings and stock prices)