CPI vs GDP Deflator

In this article the Consumer Price Index and GDP deflator will both be covered, leading on from introducing them in the article on Macroeconomics – Theory & Data. The increase in the overall price level is called inflation, therefore, economists use the GDP deflator and CPI to measure Inflation. “The first difference is that GDP … Continue reading CPI vs GDP Deflator

What is Macroeconomics?

A textbook definition of macroeconomics says that “[it] is the study of the economy as a whole, including growth in incomes, changes in prices, and the rate of unemployment.” (Mankiw, 2010) Extending over global, regional and national economies. Economists advise on policies for the government regarding important economic indicators. Macroeconomics though can often cause mistakes … Continue reading What is Macroeconomics?