more Macroeconomics

What GDP doesn't tell you:

• Doesn't tell you about development
• Doesn't tell you about population- you need per capita measure (GDP/population)
• Doesn't tell you about earnings or spending abroad (GNP)
• Doesn't tell you about quality of goods produced, or the quality of life, or the future direction of a country or if growth is sustainable
• Doesn't tell you about income distribution

What would you want to know about the economy?

1. Balance of Trade and Balance of Payments
2. Income Distribution
3. Unemployment
4. Exchange Rate
5. Human Development Index

• Literacy and Numeracy
• Age of Mortality
• Morbidity
• GDP per Capita
• Infant Mortality

6. Inflation

• The general tendency of prices to rise over time
• A sustained rise in prices over time
• A sustained fall in the value of money
• RPI
• CPI
• Factory Gate Prices
• RPIX
• RPIY

7. Hidden Economy

Types of Inflation

• Hyperinflation- 1000%
• Strtoinflation- 100%-1000%
• Creeping Inflation
• Demand-Pull
• Cost-Push
• Monetary
• Stagflation
• Deflation
• Disinflation