Measurement of Macroeconomic Performance (AQA A-Level Economics): Flashcards
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Macroeconomic indicators
Macroeconomic indicators
Data measuring economy performance & policy effectiveness
Five key macroeconomic indicators
Five key macroeconomic indicators
Real GDP per capita, CPI, unemployment, productivity, BoP
UK's inflation target (%)
UK's inflation target (%)
2% measured by annual CPI change
Lead indicators purpose
Lead indicators purpose
Predict future economic conditions based on expectations
Lag indicators purpose
Lag indicators purpose
Reveal past and current economic performance
Examples of lead indicators
Examples of lead indicators
Confidence surveys, investment plans, house starts, bookings
Examples of lag indicators
Examples of lag indicators
GDP data, employment/unemployment figures
Money supply changes assess what policy?
Money supply changes assess what policy?
Monetary policy effectiveness
Budget deficit changes assess what policy?
Budget deficit changes assess what policy?
Fiscal policy performance
Data quality impact on indicators
Data quality impact on indicators
Accuracy highly dependent on quality of statistics available