MCR001 A Economics
Trimester 3 2024
Assessment 2: Macroeconomics case study
The Key Macroeconomic Variables
There are 3 key macroeconomic variables
1. Gross Domestic Product (GDP) growth: This is a standard measure of the value of
economic activity added created through the production of goods and services
produced in the economic during a certain period. GDP also measure the income
earned from the production, or the total amount spend on final goods and services.
Factors influencing GDP include consumer spending, business investment,
government spending and not exports.
2. Unemployment Rate: This is the measure joblessness and its the most used
indicator for understanding conditions in the labour market. The labour market is
the term used by economists when talking about the supply of labour and demand
for labour. The unemployment rate can also provide insights into how the economy
is performing more generally, making it an important factor in thinking about
monetary policy.
Factor influencing the unemployment rate include economic growth, technological
changes and government policies.
3. Inflation Rate: This is measuring the cost of living and shown an increase in the level
of prices of the goods and services that households typically buy. The most well-
known indicator of inflation is the Consumer Price Index (CPI), which measure the
percentage change in the price of a basket of goods and services consumed by
households.
Trimester 3 2024
Assessment 2: Macroeconomics case study
The Key Macroeconomic Variables
There are 3 key macroeconomic variables
1. Gross Domestic Product (GDP) growth: This is a standard measure of the value of
economic activity added created through the production of goods and services
produced in the economic during a certain period. GDP also measure the income
earned from the production, or the total amount spend on final goods and services.
Factors influencing GDP include consumer spending, business investment,
government spending and not exports.
2. Unemployment Rate: This is the measure joblessness and its the most used
indicator for understanding conditions in the labour market. The labour market is
the term used by economists when talking about the supply of labour and demand
for labour. The unemployment rate can also provide insights into how the economy
is performing more generally, making it an important factor in thinking about
monetary policy.
Factor influencing the unemployment rate include economic growth, technological
changes and government policies.
3. Inflation Rate: This is measuring the cost of living and shown an increase in the level
of prices of the goods and services that households typically buy. The most well-
known indicator of inflation is the Consumer Price Index (CPI), which measure the
percentage change in the price of a basket of goods and services consumed by
households.
