Indicators of Economic Activity Flashcards

1
Q

What is the average rate of GDP growth and when is this data released (also by who)

A

released every quarter (3 months) by the ABS

average rate of growth = 3% (0.75% is expected)

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2
Q

what is the formula for growth rate

A

P2 - P1
———- x 100
P1

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3
Q

Explain GDP as an indicator of economic activity and name some public and private sectors that would release this data

A

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

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4
Q

what are leading indicators and name 6 examples

A

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

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5
Q

what are coincident indicators and name 6 examples

A

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

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6
Q

what are lagging indicators and name 5 examples

A

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

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7
Q

what are exogenous factors

A

outside factors: drought earthquake, war can impact confidence and disrupt the sectors

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