4.2.1.2 Macroeconomic indicators NOTES

What does Real GDP measure?

• Total value of all goods and services produced adjusted for inflation

• Government budget deficit

• Changes in stock market prices

• Total exports of a country

What is the purpose of Real GDP per Capita?

• To calculate the total population of a country

• To provide a measure of economic output per person

• To assess changes in the cost of living

• To measure the efficiency of production processes

What does the Consumer Price Index (CPI) measure?

• Net income from abroad

• Mortgage interest payments

• Unemployment rates

• Changes in the prices of a basket of goods and services

Which index includes housing costs, mortgage interest payments, and council tax?

• Real GDP

• Consumer Price Index (CPI)

• Balance of Payments on Current Account

• Retail Price Index (RPI)

What does the unemployment rate indicate?

• Efficiency of production processes

• Changes in stock market prices

• Labour market conditions and job availability

• Economic output per person

What is measured by Labour Productivity?

• Output per unit of labour input

• Total value of goods and services produced

• Average change in prices over time

• Net transfers from abroad

What does a surplus in the Balance of Payments on Current Account indicate?

• A country is importing more than it exports

• Changes in the cost of living

• The total population of a country

• A country is exporting more than it imports

Which indicator is key for assessing economic growth or contraction over time?

• Real GDP

• Consumer Price Index (CPI)

• Unemployment Rate

• Labour Productivity