What I may already know: • The economy is always changing. • The economy is influenced by many different factors.
Learning Intentions
In this chapter, I will learn: • What an economic indicator is. • The key economic indicators that affect our economy.
• The impact of changes in economic indicators on individuals, businesses and the economy.
Key Words: Economic indicators Inflation
Rate of inflation Deflation
Employment rate Unemployment rate
Disposable income Interest rates National income Income method Expenditure method
Gross domestic product (GDP) Gross national product (GNP) Economic growth Economic growth rate National debt
WHAT IS AN ECONOMIC INDICATOR?
The government makes financial decisions based on the statistics that affect our economy, such as the number of people in employment and how much money consumers are spending. These statistics are known as economic indicators.
Just as a car’s indicators show what direction the car intends to go, so economic indicators suggest the direction the economy is headed.
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Economic indicators are statistics that show how well the economy is doing and suggest how well it is likely to do in the future.
