Economic Indicators

GDP

• 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 

Unemployment

• 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)

Inflation 

• 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 

Hyperinflation

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