Indicators of Economic Activity Flashcards
What is the average rate of GDP growth and when is this data released (also by who)
released every quarter (3 months) by the ABS
average rate of growth = 3% (0.75% is expected)
what is the formula for growth rate
P2 - P1
———- x 100
P1
Explain GDP as an indicator of economic activity and name some public and private sectors that would release this data
GDP is a broad indicator an overall picture of economy
gov Sectors - the treasury, reservce bank of aus, ABS
priv sectors - banks, industry bodies, chamber of com
what are leading indicators and name 6 examples
change before a direction becomes evident in the rest of the economy (predicts econ trends)
e.g. shares prices, building approvals, levels of stock held, new employment vacancies, business confidence, expectations
what are coincident indicators and name 6 examples
indicators that appear to move in line with level of economic activity
e.g. manufacturing output, production of building materials, sale of durables, retail sales, interest rates and growth of GDP
what are lagging indicators and name 5 examples
these factors ‘react’ to developments that occured sometime in the past (not expected to show any change until trends in the rest of economy have been confirmed
e.g. unemployment levels, saving bank deposit levels, bankruptcy, inflation rate, consumer debt levels
what are exogenous factors
outside factors: drought earthquake, war can impact confidence and disrupt the sectors