Basic Elements Of A Country's Economy

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Basic Elements of a Kenya’s Economy The basic elements of a country’s economy are including GDP, GDP growth rate, Consumer spending, Exchange rate, GDP per capita, GNP, Stock Market, Interest rate, Government debt, Rate of Inflation, Unemployment and Balance of Trade (Trade Deficit and Trade Surplus). Definitions of Basic Elements: Consumer spending is the purchasing of goods and services by individuals or families. An exchange rate between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency. Gross domestic product (GDP) is a monetary measure of the value of all final goods and services produced in a period (quarterly or yearly). GDP per capita is a measure of average income per person in a country. GDP per capita divides the GDP by the population. Gross national product (GNP) is the market value of all the products and services produced in one year by labor and property supplied by the citizens of a country. A stock market is the aggregation of buyers and sellers (a loose network of economic transactions, not a physical facility or discrete entity) of stocks (also called shares). The interest rate, or rate of interest, is the amount of interest due per period, as a proportion of the amount lent, deposited or borrowed (called the principal sum). Government debt is the debt owed by a central government. Inflation is a sustained increase in the general price
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