Chapter 6, Problem 1DQ

Why do you think macroeconomists focus on just a few key statistics when trying to understand the health and trajectory of an economy? Would it be better to try to examine all possible data?

To determine

Macroeconomic model.

Explanation of Solution

Macroeconomists focus on a three key statistics of unemployment, real GDP and inflation and it is difficult to procedure all the information in every goods and services in each market or in the economy. Economists can gain some insight into the health of the economy by using these three key measures as mentioned earlier.

Economics Concept Introduction

Concept introduction:

Macroeconomics: Macroeconomics refers to the behaviour of the entire economy that is; it studies about the economy as a whole which includes general price level, general employment, aggregate demand, aggregate supply, general wage rate, etc.