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How Does Macroeconomics Define the Performance of a National Economy?

Macroeconomics looks at how well a country's economy is doing by using a few important signs. Here are the main ones for the UK:

  1. Gross Domestic Product (GDP): This shows the total amount of goods and services produced in the country. In 2022, the UK's GDP was about $3 trillion.

  2. Unemployment Rate: This tells us the percentage of people who are looking for work but can’t find a job. In 2023, the UK's unemployment rate was around 4.5%.

  3. Inflation Rate: This shows how much prices are going up for basic things like food and gas. In early 2023, the inflation rate in the UK was about 5%, based on the Consumer Price Index (CPI).

  4. Balance of Payments: This looks at money going in and out of the country. In 2022, the UK had a current account deficit of £40 billion, meaning it spent more than it earned from other countries.

These signs help us understand how the economy is doing and help leaders make important decisions.

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How Does Macroeconomics Define the Performance of a National Economy?

Macroeconomics looks at how well a country's economy is doing by using a few important signs. Here are the main ones for the UK:

  1. Gross Domestic Product (GDP): This shows the total amount of goods and services produced in the country. In 2022, the UK's GDP was about $3 trillion.

  2. Unemployment Rate: This tells us the percentage of people who are looking for work but can’t find a job. In 2023, the UK's unemployment rate was around 4.5%.

  3. Inflation Rate: This shows how much prices are going up for basic things like food and gas. In early 2023, the inflation rate in the UK was about 5%, based on the Consumer Price Index (CPI).

  4. Balance of Payments: This looks at money going in and out of the country. In 2022, the UK had a current account deficit of £40 billion, meaning it spent more than it earned from other countries.

These signs help us understand how the economy is doing and help leaders make important decisions.

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