Macroeconomics Indicators

Question 1

What is CPI

Answer 1

Consumer price index, is a measure of the price level and inflation.

Question 2

What is real GDP per capita

Answer 2

GDP measures national output/national income/national expenditure

Question 3

What is PPP

Answer 3

Purchasing power parity. Real GDP at PPP takes into account the relative costs of living

Question 4

What is the rate of economics measured in

Answer 4

real GDP

Question 5

What are index numbers used for

Answer 5

A way to calculate the percentage change in economic indicators

Question 6

What are the 7 limitations of GDP

Answer 6

They are difficult to measure, they include negative externalities, it ignores the distribution of income so there are inequalities, how GDP is spent, the purchasing power parity

Question 7

How is a high GDP good?

Answer 7

It enables more goods/services to be consumed, better public services and overall have better living standards