What are the key economic indicators and their impact?

What are the key economic indicators and how do they impact the economy?

Key economic indicators include GDP, unemployment rate, inflation rate, and consumer confidence. They help assess economic health.

Can you explain how GDP affects employment rates?

GDP growth typically leads to higher employment rates as businesses expand and hire more workers to meet demand.

What role does inflation play in economic stability?

Inflation affects purchasing power and can lead to uncertainty. Moderate inflation is normal, but high inflation can destabilize the economy.

How does consumer confidence influence economic growth?

High consumer confidence usually leads to increased spending, which drives economic growth, while low confidence can have the opposite effect.

Are there any indicators that predict economic recessions?

Yes, indicators like rising unemployment rates, declining consumer spending, and falling stock market prices can signal potential recessions.