Economic Growth

• macroeconomic objectives are:

  • budget deficit of surplus
  • unemployment
  • growth
  • inflation to 2%
  • trade
  • environment
  • equality
• economic growth is measured by the change in real GDP over time
• GDP is the total value of goods and services a country produces annually
• GDP per capita is a measure of the country's economic output per person
• Volume in economic data is the quantity of goods and services produced in a given time period.
• Value is what the goods and services produced in a given time period are worth
• meaning of nominal data is current prices
• meaning of real data is constant prices, nominal prices that have adjusted for inflation
• index numbers analyse time series data
• to convert the value of an economic variable to the value in the base year, use the Index Number formula:

  $(CurrentFigure/FigureInBaseYear)*$$100$
• current figure is percentage change