Question

Think about the larger economic situation in your country right now. How do the overall economy and its various aspects impact your life and finances?

Answer 1

Our overall economy is affected by what we buy, how the dollar is doing, how we are paying are debt to other countries and our political system

Answer 2

The most important aspects of our economy that impact our day-to-day lives are:

1. inflation rate: a high inflation rate reduces the purchasing power of the dollar, for example, we will need to spend more money to buy the same amount of groceries or clothes than a year before.
2. unemployment rate: unemployment rate affects everyone, not only those seeking jobs (unemployed). A high unemployment rate means that the economy is about to enter a recession which eventually will lead to a fall in consumption and that affects the whole economy. Every business is affected directly or indirectly by a recession.
3. interest rate: if I want to buy a new car or a house, a higher interest rate will make it much more difficult to repay the loan, i.e. the loan becomes more expensive.