Data which is commonly used to measure the performance of an economy, such as: real GDP, real GDP per capita, Consumer Prices and Retail Prices Indices (CPI/RPI), measures of unemployment, productivity and the balance of payments on current account
Economists use a set of key statistics to judge how well an economy is performing. These include measures of output, prices, jobs, and trade.
Formula
Real GDP per capita = Real GDP ÷ Population
Real World
When the UK Office for National Statistics reported that real GDP shrank by 0.3% in Q3 2023, markets immediately revised expectations for Bank of England interest rate cuts, showing how GDP data directly drives policy decisions.
Exam Focus
Always specify 'real' not 'nominal' when discussing GDP — omitting this loses marks on data-response questions.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
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