Question

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

Answer 1

1.2 For the purpose of such an assessment, three macroeconomic variables are particularly important: gross domestic product (GDP), the unemployment rate, and the inflation rate. 

1.3 The GDP equals the total value of goods and services produced in a country during a year.

The unemployment rate is defined as the percentage of people willing to be employed at the prevailing wage rate, yet unable to find job opportunities.

Inflation is an increase in the overall level of prices measured by the consumer price index.