2.6 Trends in macroeconomic indicators (wip) Flashcards
What is a macro-economic indicator?
Statistics that measure a countries economic health and growth over a set time period.
What are the macro-economic indicators?
- Employment
- Interest rates
- Exchange rates
- Inflation
- GDP
- Political instability
- Political uncertainty
Why do we use macro-economic indicators?
To check the performance of the economy in comparison with other economies. This can help influence the policy decisions of the government and allow them to see which areas of the economy are lacking.
Why may businesses take interest in the macro-economic indicators?
Businesses may take an interest as this will help decide which type of goods they supply in order to maintain sales.
For example if the economy is about to experience a decline as shown by indicators businesses may choose to produce more inferior goods.
Why may trade unions take interest in macro-economic indicators?
If the trade unions notice inflation is increasing and real wages are therefore decreasing they can use this as a basis to fight for increased wages for workers within the nation.
Why may foreign investors take interest in macro-economic indicators?
If the economy is showing it is beginning to grow rapidly and industrialise investors may want to take advantage of this to buy appreciating assets within the nation as demand for them will increase.
