Question

what are the key measures of economic activity in macroeconomics?

Answer 1

There are several measures of economic activity in macroeconomics, and they are listed below

Gross Domestic Product (GDP): It includes the total value of all the goods and services produced domestically in an economy.

GDP Growth Rate: It measures the rate at which the GDP is growing over the years. This indicator shows whether the economic policies have been successful in creating an environment where GDP continuously grows.

Inflation Rate: It measures the increase in the average price level of goods and services in an economy and is an important factor in determining the real purchasing power of people.

Unemployment Rate: It is the percentage of people out of the total labor-force that are actively looking for work as they are unemployed. This indicator helps in determining whether the economic growth is inclusive or not.