Question

a)Please explain what are macroeconomic indicators.

b)List three of the most important macroeconomic indicators to you personally; justify your choices

c)List three of the most relevant macroeconomics indicators to your current profession which is reconciling sales; justify your choices

Answer 1

A.

Macroeconomic indicators are those indicators that explain the economic conditions of the country and its state of health w.r.t. the economy. These indicators are applied on the whole economy and reflect what is going on in the economy. Some of the examples of macroeconomic indicators are real GDP, price level, interest rates,  employment and consumer price index among the others.

B.

Three most important indicators ( for me personally) are as follows:

1. Unemployment rate

2. Inflation rate

3. Interest rate

The unemployment rate is important to me to tell me the labor market conditions and whether should I change my job or stay in the same job. It depends upon the labor market conditions and prevailing unemployment rate in the economy. Inflation rate tells me the additional cost I have to pay for the same basket of goods I purchase every month. It will help gauge the extra pressure on my pocket and money leaked from my account. Interest rate  tells me to when to borrow so that funds will be cheap and fulfil my needs of capital goods. So, interest rate of specific concerns to me.

C.

These indicators are inflation rate,  unemployment rate and personal income. A higher inflation rate affects the sales revenue and it varies with the inflation and prevailing price of the goods and services sold. A higher unemployment, causes lower demand and sales get negatively affected related to my profession and vice versa. Personal income increases with increase in sales and vice versa.