Question

1.2 Identify and define the macroeconomic variables that can be used to measure whether the strategy was successful or not.

Answer 1

Macroeconomic variables that can be used to measure strategy success include gross domestic product (GDP), unemployment, and inflation.

Macroeconomic variables determine the state of a country's economic system.

An important feature of macroeconomic variables in determining the state of the economic system is that they are divided into two groups: flow indicators and stock indicators.

The composition of the flow indicators can include: aggregate supply, consumption, gross domestic product (GDP), investment, unemployment rate, state budget deficit (surplus), export, import, etc. Moreover, they are calculated every year.

Stock indicators include national and personal wealth, fixed assets, the number of unemployed, government debt production capacity, etc.