economic indicators revision

What is an economy?

An economy is a system that involves the production, distribution, and consumption of goods and services.

What are economic indicators?

Economic indicators are statistical data used to gauge the health of an economy.

What does economic growth mean?

Economic growth is the ability of an economy to increase its production of goods and services.

How is economic growth measured?

Economic growth is generally measured by Gross Domestic Product (GDP), which reflects the value of output produced within a country.

What is GDP per capita?

GDP per capita is the total GDP divided by the population, indicating the average economic output per person.

What are the benefits of economic growth?

Benefits of economic growth include job creation, increased income, higher tax revenue, and improved standard of living.

What are the costs associated with economic growth?

Costs of economic growth can include inflation, income inequality, resource depletion, and environmental issues.

What is the target annual GDP growth rate for Australia?

For a developed economy like Australia, a sustainable GDP growth rate of 3-3.5% per annum is considered normal.

What leads to a recession?

A recession occurs when there is a negative growth rate in the economy, typically defined as two consecutive quarters of declining GDP.

What are the main factors impacting Australia’s economic growth?

Factors include resource richness, a skilled labor force, robust trade relationships, political stability, and strong infrastructure.

What is the difference between economic growth and economic development?

Economic growth refers to an increase in the production of goods and services, while economic development refers to improvements in the welfare of people in a society.

What is the goal of measuring economic performance?

The goal is to provide insights into how well the economy is functioning and to inform policy decisions.

What is an economic development indicator?

Indicators of economic development include measures of literacy, access to healthcare, and shifts from agriculture to industry.

How has Australia's GDP changed from 2004 to 2024?

Australia's GDP increased from $659 billion USD in 2004 to $2.12 trillion USD in 2024.

What happened to the Australian economy during COVID-19?

During COVID-19, economic growth dropped by 7%, with the growth rate from September 2023 to September 2024 being only 0.8%.

What does the term 'business cycle' refer to?

The business cycle refers to the fluctuations in economic activity that an economy experiences over time, including phases such as expansion, peak, recession, and recovery.

What is economic inequality?

Economic inequality refers to the unequal distribution of income and opportunity between different groups in society.

What is the importance of tracking economic indicators?

Tracking economic indicators is essential for comparing economic health, predicting future trends, and guiding policy decisions.

What is Australia’s current economic growth as of the end of 2023?

As of the end of 2023, Australia's economy showed a growth of 0.3% over the quarter, indicating a potential recession.

What is a sustainable economic growth rate?

A sustainable economic growth rate is one that can be maintained over the long term without creating significant economic problems, typically advised at 3-3.5% for developed economies.