Question

why do you think macroeconomist focus on just a few key statistics when trying to understand the health and trajectory of an economy? would it be better to try to examine all possible data?

Answer 1

In economics, it is obviously quite difficult to take all the data into account where at times only few key statistics, which involves the mean of the data available can get you to identify an approximate picture about the phase of the economy. These key statistics include details about the health, economic growth etc and this can give a brief picture which would be more or less similar to that of the actual results. However, it would not be feasible to examine all data as there are numerous factors underlying the collection as well as interpretation of data which many even fetch you to give wrong results. Therefore it would be better for a person to examine only particular key statistics on the whole.