ch32 economic indicators Flashcards
what are economic indicators
statistics that show how well the economy is doing and suggest how well it will do in the future
what is inflation ?
an increase in goods and services
what’s the formula for the % of rate of inflation
year 2 cost - year 1 cost / year 1 x 100
causes of inflation?
demand of product is greater than supply , cost of raw materials increases and labour cost increases
what is deflation?
if the rate of inflation % falls below 0%
impact of inflation?
unemployment, less competing businesses, buy less for same price
what is employment rate ?
the % of people in the labour force that are employed
increased employment rate
individuals have more disposable icons
what is APR
annual percentage rate , the interest charged on borrowed money
what is ECB
european central bank - they set the APR rates
when interest rates are low what happens ?
inflation increases
increased employment rates ..=
individuals have less dispose income , more incentive to save ,economy is less competitive
national income =
the total net earnings from a countries production of goods and services .
CSO =
Central Staitistics Office , calculates the income and expenditure for the countries GDP
GDP
the total Market value of goods and services produced within a country in one year
GNP
- Gross national product* focuses on where goods and services are produced on who produced them…
GNP is GPD plus income earned by irish individuals and organisations abroad
increased national income
individuals have more money :)
business produce more goods and services
govt has more revenue
economic growth
growth in a country’s output of goods and services overtime, this output is measured in GDP andGNP
Calculating the economic growth rate
value of output in y2 - value of output in yr 1 / output in yr 1 x 100
impact on national debt
taxes may increase
less money available
less competitive business
opportunity cost (the money that could be used for stuff like medical care and education is used to pay off debts)
