Ch24 - National Economics Performance Flashcards
0
Q
Define inflation?
A
The rate of change of average prices in an economy
1
Q
What 4 things are used to indicate how good an economy is?
A
Economics growth rate (GDP)
Unemployment levels
The current balance
Inflation
2
Q
What are 2 problems with high inflation?
A
Disrupts knowledge of prices for consumers
Savings become worth less
3
Q
What is the current account balance?
A
It is the balance of trade of a country (X-M)
4
Q
What is CPI and how is it measured?
A
The CPI is found by doing a price survey of the top 650 most bought items, a typical basket of goods, and recorded from a base year.
