Data commonly used to measure the performance of an economy:
Gross Domestic Product –
the total value of all goods and services produced in the economy.
GDP per capita – GDP
divided by the population. A measure of living standards.
Consumer Price Index (CPI)
– a measure of the price level used widely in the Eurozone and as the target
measure for inflation by the government and MPC since 2004. Similar to RPI but
excludes mortgage interest costs and uses a geometric mean rather than an
arithmetic mean.
Retail Price Index (RPI) –
one of the two main measures of inflation used in the UK to measure the changes
in the cost of living of a typical household. RPI tracks changes in the cost of
a fixed basket of goods over time combining 180,000 price quotes across 650
representative items.
Unemployment level – the
number of individuals without a job but who are actively seeking work at
current wage rates.
The Balance of Payments on the
Current Account.
Index numbers:
Index numbers allow us to compare relative values quickly. A
base is identified and given a value of 100. All other values can then be
compared to this base. Index numbers express nothing about absolute values.
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