Factors Affecting the Economy

Factors affecting economic activity and government goals

In this section, a number of demand and supply factors will be explored in terms of their impact on economic activity and the statistics that underpin government goals.

Factors to be examined are as follows:

  • Real disposable income (D)
  • Interest rates (D/S)
  • Taxation rates (D/S)
  • Exchange rates (D/S)
  • Consumer confidence (D)
  • Business confidence (D)
  • Growth overseas (D)
  • Terms of Trade (D/S)
  • Tariff rates (D/S)
  • Productivity (D/S)
  • Labour costs (S)
  • Industrial disputation (S)
  • Government regulations (S)
  • Participation rates (S)
  • Climatic or geopolitical events (S)

[A D in parenthesis suggests that demand side effects are relevant, whereas an S suggests that supply side effects are relevant. A D/S suggests that there are both demand and supply side effects at play.]