Course 13

Understanding the economy

Inflation, interest rates and growth

What you will learn

• Explain the difference between nominal and real GDP, and understand the idea of growth.
• Identify the main price indicators, in particular the CPI and the GDP deflator.
• Understand the activity and employment indicators, and their limits.
• Explain the role of interest rates in saving, borrowing and investment decisions.
• Recognise the main phases of the economic cycle and the variables that go with them.
• Link macroeconomic information to a personal or business financial situation, with caution.

• 1. Measuring economic activity: GDP and growth
• 2. Inflation and price indicators
• 3. Activity, consumption, investment and employment
• 4. Interest rates and how they reach the economy
• 5. Economic cycles and shocks
• 6. Reading the economic situation and building an analysis

49 €