Consumer Price Index (CPI), Inflation, Macroeconomics, Statistics
Macroeconomics · Price Indices & Monetary Policy A single number, published monthly, determines the value of pensions, the level of interest rates, the real burden of national debt, and whether a government survives an election. It is constructed from a basket of...
GNI, Gross Domestic Product (GDP), Macroeconomics
By Valeria Popa: Let us first distinguish between GNI, GDP and GNP to understand how is GNI different from these two measuring indicators. Study smarterGNI, PPP adjustment and the whole family of living-standards indicators are covered with worked comparisons in the...
Consumer Price Index (CPI), Inflation, Macroeconomics
Valeria Popa In previous articles you have learned about macroeconomic indicator like GDP which is highly important for understanding business cycles and economic performances and GNI which can offer a perspective on the living standards of a country’s residents. We...
GDP Growth Rate, Gross Domestic Product (GDP), Macroeconomics
Study smarterGrowth-rate calculations, compounding and the difference between nominal and real growth are worked through step by step in the Economics Made Simple Complete Bundle — textbook, practice questions with mark schemes, flashcards and 100 case...
Gross Domestic Product (GDP), Macroeconomics, Nominal, Real & GDP Deflator
Macroeconomics · National Income Accounting An economy where nothing is produced but every price doubles will report 100% nominal GDP growth. Separating the change in quantity from the change in price is the entire purpose of real GDP — and doing it correctly turns...
GDP vs GNP, Gross Domestic Product (GDP), Macroeconomics
Although both GDP and GNP measure the size of an economy, either for business or economics forecasting purposes, they are not one and the same thing. Therefore, one should not be confused by their similar terminology. Simply put, while GDP looks at the strength of a...
3 Approaches of Calculating GDP, Gross Domestic Product (GDP), Macroeconomics
Macroeconomics · National Income Accounting Three completely different accounting routes — production, expenditure, and income — must arrive at exactly the same number. That they do is not a coincidence. It is the deepest identity in macroeconomics, and understanding...
Gross Domestic Product (GDP), Macroeconomics
Study smarterGDP, its three measurement approaches and Kuznets’s warning about using it as a welfare measure are covered in full in the Economics Made Simple Complete Bundle — textbook, practice questions with mark schemes, flashcards and 100 case...
Macroeconomics, Unemployment
Macroeconomics · Labour Markets A person who gives up looking for work is not unemployed. They vanish from the statistic entirely — and the unemployment rate falls. Understanding what the unemployment rate excludes is more important than knowing what it includes....
Demand pull and Cost Push Inflation, Inflation, Macroeconomics
Macroeconomics · Inflation Between 2021 and 2023, inflation returned to the advanced economies for the first time in forty years. Economists disagreed violently about whether it was demand-pull or cost-push. The answer, it turns out, was both — and the sequence in...
