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Hello! I am Lara Gargett I am here to tell you about Macroeconomics. You can find me at [email protected]
1 What Is Macroeconomics? Being one of the branches of Economics, Macroeconomics is referred to as the one that studies the performance and behaviour of the economy of the country as a whole. Its major focus remains on factors such as unemployment, growth rates, gross domestic products, and inflation. It also studies the regional, national and global economies as a whole, macro issue. Gross domestic product is one of the major concepts that is studied with in-depth research.
Gross Development Product (GDP)
GDP or Gross Development Product refers to the total amount of services and goods that a country produces. It is in direct relation to the inflation in the economy. The GDP is higher if inflation goes up. The disadvantage of GDP is that it needs to be surveyed and collected after a specific period, and the other times it is thus only an idea of what it actually can be.
Unemployment Rate This refers to a study of data that indicates the number of people who are not able to find a job or work to earn a living amongst the total group of the working class. The researchers or the Macroeconomists, when witnessing a growth in the GDP, understand that the unemployment rate is low, marking a good sense of economy in the country. 5
Inflation The third factor and the most important factor is inflation, or rather the rate of price rise. It is supposed to be measured in two major ways like GDP deflation and CPI or the consumer prices index. Where CPI provides the relatable price on the selected services and goods updated on regular intervals, GDP is the actual ratio between the guessed GDP and the calculated GDP. The actual difference between the GDP and the CPI is of less than 1%
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