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Economic statistics

The state of the economy affects production, consumption and profits. For this reason, CEOs, chairpersons, investors and speculators should monitor the economy when making business and investment decisions. Statistics and charts of the official interest rate, inflation, average profit, the number of businesses, average prices, etc, are all useful.

The official interest rate may change from time to time. The lowest interest rate is 2% and the highest is 20%.

Interest rates is the foundation of monetary policy in an economy. When the central or reserve bank increases the money supply by adjusting the official cash rate or the requirements on reserves, or both (ie, looser monetary policy), interest rates fall, all other things being constant. Conversely, when the central bank decreases the money supply (ie, tighter monetary policy), interest rates rise. The change in the money supply affects inflation directly. The change in interest rates affects investment and consumption. A higher interest rate means loans are more expensive so business investment falls, which in turn may lead to less wages and household income. The change in interest rates also affects consumption directly. A higher interest rate means mortgage and credit card repayments are greater so disposable income falls. In short: when the interest rate rises, investment and consumption falls; when the interest rate falls, investment and consumption rises.

By design, the game's economy can be susceptible to cost push inflation. When prices rise, workers will demand higher wages to compensate for the higher cost of living. The rise in wages translate to higher business costs, and this might push prices up.

The average net profit statistic is the best indicator of the performance of the economy. It is proxy for GDP or economic activity. If it is high and rising, the economy is booming. If is low and falling, the economy is in a downturn.

The sharemarket index is another indicator that can be used to gauge the economy. A booming sharemarket is often a sign of high expectations among investors.

The percentage of companies with profits shows the extent to which the growth in the economy is spread out or concentrated.

The average number of workers per company reveals whether players are employing a lot of workers or a few. It is helpful for finding out the average size of a company, and thus the level of business confidence.


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