Economic Indicators

Economic Indicator

Statistics that show how well the economy(country) is doing and suggest how well it will do it future. Employment levels, inflation, interest rates, national debt, national income, economic growth.

Inflation

Increase in the price of goods and services from 1 year to the next. Baskets used to compare prices.

Consumer Price Index

Measures inflation. Again BASKET

Calculating the rate of inflation

Yr 2 - Y 1 over Yr 1 by 100

Employment Levels

Employed - Members of the labour force able to find work

Unemployed - Members of the labour force unable to find work

Labour Force

People able to do work aged 16-65 not including the disabled or in full time education.

Deflation

Fall in rate of inflation

Disposable income

Income an individual or household has left after taxes and other extra expenses have been deducted.

Interest

Reward for saving money or the cost of borrowing money. European Central Bank

National Income

The total value of all new goods and services produced within a country in 1 year. INCLUDING resident income.

Gross Domestic Product

Total value of goods and services produced in a country in 1 year. ONLY made INSIDE the country

Gross National Product

Total value of all final goods and services produced by a country in a given period of time including overseas production.

National debt

Total amount of money borrowed by a country’s government. Form of current expenditure.

Economic growth

When there is a increase in the amount of g&s  produced in an economy from 1 year to the next.

Economics

The study of how people , businesses and govs. make descisions with limited resources.