Identifying 3 Key Economic Statistics - dummies

By Manzur Rashid, Peter Antonioni

Part of Macroeconomics For Dummies Cheat Sheet, UK Edition

Economics can seem overwhelming, especially when examining statistics. Take a look at the following information to gain a better understanding of those statistics. Macroeconomists look at the following summary statistics to assess the health of an economy:

  • Real GDP (or output): The total value of goods and services produced in an economy in one year. Basically, GDP is the size of the whole cake that will then be cut up into (quite unequal) slices, with each person getting a slice.

  • Unemployment: The proportion of people who are unemployed out of those who are able and willing to work.

  • Inflation: The percentage increase in the average price of goods and services.