Macroeconomics Is The Study A Nation 's Economy And The Economy 's Inner Workings

1165 Words Oct 25th, 2016 5 Pages
Macroeconomics is the study a nation’s economy and the economy’s inner workings. One way to measure a country’s economy is by the Gross Domestic Product (GDP) is used. The GDP gives us the monetary “big picture” of everything that has been produced, to include goods and services. “GDP measures the market value of not just apples and oranges but also pears and grapefruit, books and movies, haircuts and healthcare, and on and on (Mankiw, 2015, p. 486).” The Bureau of Economic Analysis measures the GDP in four quarters to reflect how the economy of a nation is doing, as well as in years. This data can be used to reflect the percentage of change between quarters or between years.
When it comes to the GDP there are different types: nominal, real, growth rate, and per capita. A nominal GDP gives a raw measurement with price increases included. The United States Bureau of Economic Analysis (BEA) measures the nominal GDP quarterly and reassesses the numbers when it receives data in (Amadeo, 2016). Real GDP is the calculation of the GDP without inflation, income from outside of the country, and “only the final product is counted (Amadeo, 2016).” The growth rate is the percentage of increase in a countries quarterly output, giving a visual of an economy’s growth. Finally, the way that a GDP gets compared between countries is the GDP per capita. The per capita looks at the population, the population’s income, unemployment, and healthcare. To create a ratio between the…

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