Economic Indicators and Growth Flashcards
Value of a currency
Determined by political conditions (stability), the balance of payments (money going in and out), and the economic conditions of the country
Interest rates
Controlled by banks (mortgages), slow economy growth is better because it means that the interest rates will go up slowly as well
Inflation rates
The change in the average price of goods and services over time. Prices increasing means that we are spending more money over time, but we are most likely making more also
GDP
The value of all goods and services produced in one nation in a one year period
Unemployment rate
The percentage of citizens in a country who are of working age who do not work
Cost of living
Comparing salaries to the price of goods and services and how expensive it is to live in one are as opposed to another
Balance of trade
Difference between a nation’s imports and exports if the economy is good, you want to export more to bring in foreign money
Level of foreign debt
How much borrowed money from other nations do you owe? It is not a bad thing, if you can pay it back
Economic growth
Natural resources, capital $ resources, human resources (skills), technological resources
