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Key Economic Indicators Healthy economy - 4 macro goals The circular flow of income sustained economic growth low inflation low unemployment sustainable balance of payments actual potential GDP an increase in the production capacity of the economy inflation = a situation where there is a sustained increase in the general price level % rate of increase in the CPI/period keep price stable - aid the process of economic decision making unemployment of labour = situation where people who are available for work and are actively seeking for work cannot find jobs unemployment rate BOP = record of a country's international transactions, i.e. between its residents and the rest of the world
Macro Economics
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