Macro 1- Macroeconomic indicators and government objectives

• Economic growth It is the output produced by the economy over a period of time in percentage change in overall income
• Macroeconomic objectives- Price stability How fast average level of prices of good and services increase over a period of time
• Macroeconomic objectives- stable balance of payments on current account The difference between value of goods and services exported and the value of goods and service imported
• Other macroeconomic objectives Minimising unemployment balancing government budget achieving equal distribution of income
• Conflicts in achieving macroeconomic objectives Short term Policy conflict If unemployment levels fall prices increase at a faster rate
• Macroeconomic indicators Focuses on an economic variable that measures economic performance
• Real GDP National income of an economy over a period of time after removing effect of price changes from its value
• Real GDP per capita Real GDP/ population level
• Consumer price index Official measure of inflation