Macroeconomic indicators, GDP, Circular Flow of Income

Macroeconomic Indicators

Economic growth is an increase in quantity and quality of the economic goods and services that society produces and consumes.

Unemployment members of labour force who want and able to work, but unable to find a job in a period of time. Labour Force Survey, Claimant Count

Inflation is the rate in change of average prices in an economy. CPI/RPI

CPI - is a measure of price level and inflation, using a basket of common goods.

Balance of payments measures UK's record of economic activities with other countries.

Current account trade in all g+s abroad

Capital account all fixed asset purchasing abroad

Financial account trade for all financial investment abroad

GDP

GDP is the sum of all goods and services produced in an economy over a period of time.

GDP per capita is a measure of economic output that account its number of people.

real GDP is GDP measured taking into account the effects of inflation.

Limitations of GDP as a measure of living standards

1. Difficult to measure …