Trade and Economics

CPI, GDP, Per capita GDP, Trade, Output, Credit, Etc.


When the economy expands, there is more money and more trade going around and supplying everyone. There is little to no debt and or financial crisis.

For the average American this would be paradise do buy things as well as take out loans and invest in products.


When the economy Contracts however, there is less money and trade going to people and supplying them. Debt and low credit are frighteningly abundant as well as the high chance for a depression.

For the average American this would be hell. Money would lose value, stock markets would crash, you name it, because when a contraction hits anything can happen.


A Peak on an economic chart symbolizes an expansion. These are in Supply/Demand charts showing an influx of trade and money.

This would be great as its Economic Paradise.


A Trough symbolizes a economic Contraction and/or an economic depression. These too show up in Supply/Demand Charts and show a decrease in trade and money.

This would be a horrible environment to do anything big with money.


The CPI, Consumer Price Index, measures changes in the price level of a market basket of consumer goods and services purchased by households. The CPI is a statistical estimate constructed using the prices of a sample of representative items whose prices are collected periodically.


GDP, Gross Domestic Product, is the monetary value of all the finished goods and services produced within a country's borders in a specific time period. Though GDP is usually calculated on an annual basis, it can be calculated on a quarterly basis as well.

Per Capita GDP

Per Capita GDP is a measure of the total output of a country that takes the gross domestic product and divides it by the number of people in the country. The per capita GDP is especially useful when comparing one country to another because it shows the relative performance of the countries.


Trade, or commerce, involves the transfer of the ownership of goods or services, from one person or entity to another, in exchange for remuneration, goods or services. A network that allows trade is called a market.


Output is the "quantity of goods or services produced in a given time period, by a firm, industry, or country," whether consumed or used for further production. The concept of national Output is essential in the field of macroeconomics.


Credit is a contractual agreement in which a borrower receives something of value now and agrees to repay the lender at some date in the future, generally with interest. The term also refers to the borrowing capacity of an individual or company.


Investment is the purchase of goods that are not consumed today but are used in the future to create wealth. In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or appreciate and be sold at a higher price


Also called earnings or gross profit, Income is an amount by which total assets increase in an accounting period. Consumption that, at the end of a period, will leave an individual with the same amount of goods as at the beginning of that period.


Employment and unemployment are the driving forces behind economic growth and stagnation. On a national scale, unemployment rates affect consumer confidence in a variety of ways, including the desire to make purchases.