Economic Indicators
This indicator measures how much a country’s economy is growing over time.
What is economic growth (GDP growth)?
Inflation increases when demand in the economy is greater than this.
What is supply?
High unemployment means fewer people have this.
What is income?
Economic performance affects living standards because it influences this.
What is income and employment opportunities?
This occurs when overseas businesses invest money into Australia.
What is foreign investment?
This indicator measures the percentage of the labour force without a job but actively looking for work.
What is the unemployment rate?
When production costs rise (like wages or fuel), businesses often raise prices. This is known as this type of inflation.
What is cost-push inflation?
When unemployment is high, government spending on this increases.
What are welfare payments (benefits)?
Strong economic growth usually leads to higher this, improving living standards.
What are wages/income?
One advantage of foreign investment is increased this in Australia.
What is job creation?
This indicator measures the sustained increase in the price of goods and services.
What is inflation?
When consumers spend heavily and demand exceeds supply, causing prices to rise.
What is demand-pull inflation?
Maintaining a suitable unemployment rate is important because it helps maintain this in the economy.
What is economic stability?
Low unemployment improves living standards because more people can afford this.
What are goods and services?
Foreign investment can improve this through new technology and expertise.
What is productivity?
The three main indicators of economic performance in Australia are these.
What are economic growth, unemployment, and inflation?
Rapid inflation reduces this aspect of living standards.
What is purchasing power?
High unemployment can lead to lower tax revenue and lower funding for these.
What are public services and infrastructure?
High inflation harms living standards because it reduces this.
What is purchasing power?
One disadvantage of foreign investment is profits may flow back to this.
What is overseas (foreign countries)?
This index is used to measure inflation in Australia.
What is the Consumer Price Index (CPI)?
If the Reserve Bank wants to reduce inflation, it may increase this.
What are interest rates?
Very low unemployment may contribute to rising wages, which can lead to this economic issue.
What is inflation?
Explain the relationship between economic performance and standards of living, referring to at least two indicators.
What is: Economic growth increases income and job opportunities, improving living standards, while low unemployment provides income security. However, high inflation reduces purchasing power and can lower living standards.
Another potential disadvantage is loss of this over key industries.
What is control/ownership?