Economic Indicators

  • Created by: Em
  • Created on: 29-02-16 06:48


  • One of the primary indicators of economic growth 
  • Doesn't consider the quality of life or the population size (unless it's GDP per capita)
  • Doesn't consider debt or non-market productivity (e.g. illegal activity)
  • Doesn't say how the goods and services are distributed 
  • Doesn't include negative externalities 
  • There are sometimes estimations involved 


  • You are considered unemployed if you are over 15 years old, are available to start work and are actively seeking work but can't find any work to do
  • Excludes people under 15, retired people, people with injuries, and people who choose not to work 

Cyclical Unemployment

  • A form of unemployment that happens when there aren't enough jobs for the number of people lookng for work 
  • This usually happens when national spending and production (GDP) levels are weak which is usually during recessions or depressions
  • This is the type of unemployment most economies want to avoid

Natural Unemployment 

  • Unemployment will always be around to some degree in healthy economies 
  • Natural unemplyment is the lowest rate of unemployment an economy can sustain over the long-term 

Causes of Natural Unemployment:

Frictional Unemployment 

  • When someone is looking for jobs after being fired 

Structural Unemployment

  • Happens when there is a change in how goods and services are produced (e.g. human jobs being replaced by machines)

Seasonal Unemployment 

  • Happens when jobs are cut at the same time every year because of the change of seasons (usually happens in agricultural jobs)


  • An increase in a currency supply (relatie to the number of people using it) this results in a rise of goods and service prices 

Types of Inflation

Cost-Push Inflation

  • Inflation caused by an increase in the price of inputs (e.g. labour or raw material)

Demand-Pull Inflation

  • Inflation caused by the increase in the price of goods and services as supply becomes unable to match demand 


  • Is a typed of inflation that happens when prices increase (more than 50% a month) 
  • This increase in price usually…


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