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Economic Indicators (Inflation (effects : (Household effects : Consumers…
Economic Indicators
Inflation
Inflation is the increse in the general levels of prices of goods + services from one year to the next
Formula : difference in cost pf living between year one and two over the cost of livong between year 1 x 100.
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effects :
Household effects : Consumers will not be able to buy as many goods and services as they did previously
Business Effects : Workers may demand wage increases . this will increase business costs and will result in lower profits .
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National Income
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Gross Domestic Product ( GDP )measures the total value of the goods and services produced within a country in one year
Gross National Product ( GNP ) is the total value of the goods and services produced by a country in one year
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Employment rates
The labour force refers to all those people of working age ( 16-65) who are willing and able to do work
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National Debt
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Impact :
Household : taxes may increase , Government spending may be reduced
Businesses : Taxes may increase , Reduced consumer demand
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Economic Growth
Economic growth occurs when there is an increase in the amount of goods and services produced in an economy from one year to the next
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