Economic Indicators

Front

Gross Domestic Product (GDP)

Back

GDP is the total value of all goods and services produced within a country's borders over a specific period, usually a year or a quarter. It acts as the country's economic report card.

Front

Importance of GDP

Back

A growing GDP generally indicates a healthy economy, with businesses producing more and people having more income. A shrinking GDP can signal a recession.

Front

Inflation Rate

Back

Inflation is the rate at which the general level of prices for goods and services is rising, leading to a fall in the purchasing power of currency.

Front

Importance of High Inflation

Back

High inflation can make it harder for people to afford things and for businesses to plan for the future. Central banks try to keep inflation low and stable.

Front

Consumer Price Index (CPI)

Back

The CPI measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. It is the most widely used measure of inflation.

Front

Unemployment Rate Definition

Back

The unemployment rate is the percentage of the labor force that is jobless and actively looking for work.

Front

Importance of Low Unemployment Rate

Back

A low unemployment rate is a sign of a strong economy, recovery or prosperity where businesses are hiring.

Front

Impact of High Unemployment Rate

Back

A high unemployment rate can indicate economic trouble and hardship for many people.

Front

Interest Rate Definition

Back

An interest rate is the cost of borrowing money, expressed as a percentage of the loan amount. It's also the reward for saving money.

Front

Importance of Higher Interest Rates

Back

Higher interest rates can make it more expensive for businesses to borrow money to expand and for consumers to get loans for things like cars and houses. This can slow down the economy.