Answer to Question #93766 in Macroeconomics for mpho Damons

Question

how can macroeconomic variables be measured

Answer 1

Macroeconomic variables include the total output generated by an economy. To make this determination economists measure the Gross Domestic Product (GDP), which is the total monetary value of goods produced within a nations border over a specified period of time, in most cases a year. The process helps measure the country's output.

The variable is measured by determining consumer spending, private investment, government spending and net exports. Net exports are generated by subtracting total imports from total exports. GDP is a reflection of the aggregate income earned from internal factors of production. GDP calculation accounts for the market value of goods and services produced.