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Understanding the meaning and measurement of macroeconomic variables is vital for your ability to evaluate the abundance of information you receive through various forms of the media about the state of the aggregate economy. The difficulties faced by the team of International Monetary Fund (IMF) economists with which we opened the chapter are not that different from the problems each of us faces in understanding what is happening in the economy.
The concepts and variables you have discovered in this chapter are used over and over again in the various applications discussed in this book. We use the concepts of real gross domestic product (real GDP), the inflation rate, the unemployment rate, and so forth almost everywhere in our study of macroeconomics.
Bureau of Labor Statistics (BLS): http://www.bls.gov
Which of the following variables are stocks? Which are flows?
Which of the following people are classified as unemployed?
Table 3.9 Data
|Price ($)||Quantity||Price ($)||Quantity||Price ($)||Quantity|
Using the data in the preceding table, reconstruct Table 3.1 "Calculating Nominal GDP" to calculate nominal GDP, Table 3.3 "Real GDP Using 2012 as the Base Year" to calculate real GDP, and Table 3.4 "Calculating the Price Index" to calculate a price index and the inflation rate.