THE BEAUTIFULNESS

IN MACROECONOM

ICSAuthor: Daeisha Breanna Carrie

Fowler

WHAT IS MACROECONOMISC? Macroeconomics measures economic

growth on a large scale. It looks at the “BIG PICTURE” of

economics.

WHAT EXACTLY DOES IT MEASURE?

It measures:-Inflation-GPD-Unemployment rate-Economic growth

GROSS DOMESTIC PRODUCT

Gross Domestic Product (GDP) is the total number of goods and services produced in an economy.

Equation for GDP:

GDP= C+I+G+(x-n) C= Consumer’s spending I= Investments G= Government spending (x-n)= Exports- Imports

INFLATION Inflation is an increase in the average price of goods

and services in an economy. When the prices of goods and services increase,

consumers are forced to only have less of their money and they’re spending more than they ever did before.

EQUATION FOR INFLATION We use Consumer Price Index (CPI) to calculate

inflation.

CPI= cost of today’s market basket

Cost of market basket in previous year

UNEMPLOYMENT RATE Unemployment is generally a portion of the labor

force is that isn’t working but is actively look ing for a job abd is willing to work.

How To Calculate The Unemployment Rate:

# of people looking for work

(Unemployment + employment; labor force)

ECONOMIC GROWTH an increase in real output as measured by real GDP

or per capita real GDP If GDP increases, then the economy experiences

economic growth

HOW TO CALCULATE ECONOMIC GROWTH (real GDP yr2 - real GDP yr1)/(real GDP yr1) * 100