Macroeconomic Indicators

Question 1

Types of data that can measure the performance of the economy

Answer 1

Real GDP, Real GDP per capita, consumers price index ( CPI) and retail price index ( RPI ), Claimant Count, labour force survey, measures of productivity and balance of payments acc

Question 2

What is real GDP

Answer 2

Measures the quantity of goods and services produced in an economy, value is adjusted for inflation

Question 3

What is real GDP per capita

Answer 3

Value of real GDP divided by the population of the country, measures the average output per person in an economy

Question 4

CPI and RPI

Answer 4

CPI - measures what consumers spend their money on, from this a basket of goods is created
RPI - measure of inflation that included housing costs unlike CPI

Question 5

What is measures of productivity?

Answer 5

Output per worker per a period of time, measures how efficient production is. Eg 2015, labour productivity grew by 0.3%

Question 6

What is balance of payment

Answer 6

Record of all financial transaction made between firms,consumers and with foreign countries.

Question 7

What are exports

Answer 7

Goods and services sold to foreign countries, + because they are an inflow of money

Question 8

What are imports

Answer 8

Goods and services bought from foreign countries, - because they are an outflow of money

Question 9

What is balance of payments made up of?

Answer 9

• current account
• capital account
• official financing account