OJA 3 - Economy, GDP, Economic Growth

Question 1

What are the key goals of modern developed countries?

Answer 1

1. Ensure economic efficiency
2. Keep economy growing over time
3. Limit unemployment / ensure optimal employment
4. Freer trade
5. Keep prices stable
6. Optimal income distribution

Question 2

What are key macroeconomic indicators in Czechia?

Answer 2

GDP, prices, labour market, public finance, foreugn investments, currency exchange, interest rates

Question 3

What is a GDP?

Answer 3

• It means a gross domestic products, also kniwn as economic output
• It is the value of all final goods/services produced within a country’s borders in a specific period of time (a year)

Question 4

Why is GDP important?

Answer 4

• Because it tracks the health of the country’s economy,
• It is an indicator of growing / declining economy = economists can use it to determine whether an economy is growing or experiencing recessing
• also used by investors to make invesments (e.g. The economy is bad, that means lower earnings and stock prices)