Macroeconomic indicators

Economists use a set of key statistics to judge how well an economy is performing. These include measures of output, pri

The measurement of macroeconomic performance

Macroeconomic indicators

To judge how well an economy is performing, economists rely on a set of macroeconomic indicators — statistical measures

The measurement of macroeconomic performance

The objectives of government economic policy

Governments aim to manage the whole economy by pursuing four goals: steady growth in output, stable prices, low unemploy

The measurement of macroeconomic performance

The objectives of government economic policy

Governments often cannot hit all four economic targets at once. Policies that fix one problem can make another worse.

The measurement of macroeconomic performance

The objectives of government economic policy

Governments use macroeconomic policy — decisions about taxation, spending, and interest rates that affect the whole econ

The measurement of macroeconomic performance

Uses of index numbers

An index number tracks how a variable changes over time by comparing it to a fixed starting point called the base year,

The measurement of macroeconomic performance

Uses of index numbers

Economists use index numbers to track how things like prices or national output change over time. The Consumer Prices In

The measurement of macroeconomic performance

Uses of index numbers

Index numbers are a tool economists use to track how a variable — such as the price level or real GDP — changes over tim

The measurement of macroeconomic performance

Uses of national income data

Economists use national income data to track whether people's lives are improving over time. But the raw numbers can mis

The measurement of macroeconomic performance

Uses of national income data

Economists use GDP per capita — a country's total output divided by its population — to compare living standards across

The measurement of macroeconomic performance

Uses of national income data

When comparing living standards between countries, money goes further in some places than others. Purchasing power parit

The measurement of macroeconomic performance

Uses of national income data

National income data — most commonly measured as GDP per capita (the total value of a country's output divided by its po

The measurement of macroeconomic performance