When trying to understand the health and trajectory of an economy, why do you think macroeconomics focus on just a few key statistics? Would it be better to try to examine all possible data? Explain
The focus seems to be on important statistical data related to GDP, inflation and unemployment when looking at the health and direction the economy is going (McConnell, Flynn, & Brue, 2015). The Gross Domestic Product focuses on the value of all the things and amenities made in a country for a precise amount of time. Unemployment rate is important because a country depends on its most asset which is the people. The people are trained and qualified to work to help produce the goods needed for the county to provide positive health and positivity for the economy. If the jobs are not available, that can have a negative impact. When there is a high percentage of employment, there is negative impact on the economy. Inflation rises or decreases depending on the prices of the economy from one year to the next If there is a high increase of need for instance car, inflation is going to rise on the price for cars, because its in demand. Families may not be able to afford. With inflation being increased, there income may stay the same, which means they may not be able to purchase the vehicle. These three main statistics represent the long-term growth and short term rise and falls of the health and economy. These three are easier to track based historical data that macroeconomist use to view trends. If they tried to examine all the data, then they would get a wide range of items that may not solely focus on what they are looking for, such as the health and trajectory of an economy (McConnell, Flynn, & Brue, 2015)
McConnell, C., Flynn, S., & Brue, S. (2015). Macroeconomics. (20th ed.). New York, NY: McGraw-Hill. ISBN: 9780077660772.
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