What are the three primary measures used in macroeconomics to assess the performance of an economy?

Exercises to calculate gdp by the three methods pdf

In this short video, Dan Ariely, Professor at Duke University, explains what behavioral economics is and how it differs from classical economics; highlighting that both answer the same questions, but for the branch that mixes economics with psychology and sociology, human beings are not rational beings.

Homo economicus” vs. “homo sapiens”: Behavioral Economics and Fiscal Policy”, illustrates how the rational person of classical economic models and the irrational person that stands out in behavioral economics look in practice.

She is Venezuelan, with a degree in International Relations with a focus on Conflict Resolution, Human Rights and Latin America from the University of Colorado, Boulder. After college, Arianna traveled to Brazil to conduct research on the role of different artistic disciplines in youth empowerment and community development. Passionate about Human Rights, Arianna moved to Washington, DC to join the Press and Communications team at the Inter-American Commission on Human Rights as well as the Due Process Foundation.Reader InteractionsComments

How to calculate gdp examples

Dutch economist Jank Tinbergen developed the first comprehensive national model, which was constructed for the Netherlands in 1936. Later the same modeling structure was applied to the economies of the United States and the United Kingdom. Lawrence Klein initiated the world’s first macroeconomic model, Wharton Econometric Forecasting Associates’ LINK. The model was cited in 1980, when Klein, like Tinbergen above, won the Nobel Prize. Large-scale empirical models of this type, including the Wharton model, are still in use today, especially for forecasting purposes.

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If we ask an analyst what is the diagnosis of our economy, he/she will surely take as an important reference the evolution of the Gross Domestic Product. GDP is the total value of the final goods and services produced by a country during a defined period of time. When we talk about final goods, we refer to those goods and services that the final consumer buys.

The National Institute of Statistics and Geography (INEGI) indicates that during the period from July to September, the GDP grew 4.5%, compared to the same period in 20101, that is, around 600 billion pesos more. But what is the use of knowing if this figure is increasing?

Tertiary activities grew by 4.8% at an annual rate. In this category we find commerce, financial and insurance services, transportation, mail and storage, real estate services, professional, scientific and technical services, among others. On the other hand, secondary activities such as mining, electricity, water and gas supply, construction and manufacturing industries showed an increase of 3.4%5.

Friedrich Hayek

2017-22 Disjunct between price stability and financial stability objectives: determinants of coordination gains between monetary and macroprudential policy (Available in English only).

Description: This paper studies the disjuncture that can arise between the objectives of the inflation targeting and financial stability scheme. We use a simple conceptual framework to conduct macroeconomic policy analysis under three strategies: (1) a base case in which monetary policy pursues traditional price stability objectives; (2) a monetary policy that “leans against the wind”; and (3) a case of coordination between monetary and macroprudential policy instruments. It is found that, under certain circumstances, having financial stability objectives as an additional macroeconomic policy can increase inflation volatility. We also identify cases in which the costs in terms of macroeconomic volatility between policy objectives create room for improvements when monetary and macroprudential policies are coordinated. These improvements are generally greater when financial shocks are the main source of macroeconomic fluctuations.

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What are the three primary measures used in macroeconomics to assess the performance of an economy?
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