What is inflation and why does it matter?

Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. It matters because it erodes the value of money over time, impacting consumer spending, savings, and investment decisions.

How do interest rates affect the economy?

Interest rates influence borrowing costs for consumers and businesses. Higher rates can slow economic growth by making loans more expensive, while lower rates can stimulate spending and investment, driving economic expansion.

What is GDP and how is it measured?

GDP (Gross Domestic Product) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period. It's primarily measured using the expenditure, income, or production approach.

What role does international trade play in the global economy?

International trade facilitates the exchange of goods and services across borders, promoting economic growth, efficiency, and specialization. It allows countries to access markets, resources, and technologies they might not have domestically, fostering global interdependence.