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Economic indicators - Coggle Diagram
Economic indicators
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Inflation
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Usually happens in times of an economic downturn as people cannot afford to buy products at current prices and so prices fall.
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high inflation Economy
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Cheaper imports: Imported G&S will be cheaper on the domestic market which will lead to loss of sales
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Employment rates
Employment rate: Percentage of labour force employed, or self employed
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Full employment
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In Ireland, full employment is when the rate of unemployment is around 4%
National debt
Individuals
Standards of living: People are earning more and so are spending more. There is a high standard of living.
Employment: With increased demand for goods and services, more people will be employed.
Businesses
Increased sales: Increased demand for goods and services will lead to more sales and thus bigger profits for the business.
Economy
Gov’t Revenue: The Government will have increased revenue from indirect taxes such as VAT and direct taxes such as income tax.
Gov’t expenditure: The government will spend less money on social protection due to increased employment.
Decrease in national debt: With more money available, the gov’t can put more towards servicing the national debt.
Exchange rates
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While they do not determine the exchange rate, the place a value on which they are willing to buy and sell currency for. (Banks also Makea profit on the transaction!!)
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