Economic Growth, Inflation and Unemployment Flashcards
How is economic growth measured?
GDP (Gross Domestic Product)
What is GDP?
The total market value of final goods and services produced by a country over a period of time.
What is the Australian Governments target for Economic growth?
3-4% per annum.
What is inflation?
An increase in the general level of prices across the economy.
How is inflation measured?
CPI (Consumer Price Index)
What is CPI?
The average change in retail price of a basket of local and imported goods and services.
What is the Australian Government target for inflation?
2-3% over the business cycle.
What is unemployment?
The number of people over 15 and who are able And willing to work.
How is unemployment measured?
Unemployment rate.
What is the unemployment rate?
Unemployed people who are able and willing to work as a percentage of the total workforce.
What is the Australian Government target for unemployment?
5% or the natural unemployment rate.
What is economic growth?
An increase in the capacity of an economy to produce goods and services from one period to another.
