Economic And Social Indicators Flashcards
What are the 4 things to consider when assessing an economy
Performance
Comparisons
Specifications
Purposes
What is an economic indicator
Statistics that show general trends in an economy and are used to analyse the economic performance and predict the future performance of the economy
What is inflation
An increase in the general level of prices in an economy that is sustained over a period of time
What rates does the SARB aim to keep the inflation rate between
3 and 6%
What are the two instruments used to measure inflation
Consumer Price Index
Producer Price Index
What is CPI
The weighted average of the prices of a general basket of goods and services likely to be bought by consumers
What is PPI
Measure of prices of locally produced goods when they leave the factory gate, and imported goods when they enter the country
What are the 2 foreign trade indicators
The terms of trade - Ratio of exports and imports prices
The exchange rate - The price of one country’s currency in terms of another’s
What are the 2 employment indicators
The economically active population
Employment rate
What are the 3 uses of employment indicators
Calculate trends in employment
Calculate productivity
Show the success of the economy in utilising its full potential
What are the 3 types of productivity
Labour
Capital
Multi-factor prudctivity
What are the 2 productivity indicators
Labour Productivity
Remuneration per worker
What are the 2 interest rate indicators
Interest rates
Repo rate
What are the 3 money supply indicators
M1 Money supply
M2 Money supply
M3 Money supply
What is M1 money supply
Notes and coins in circulation and demand deposits of the domestic private sector banks
