Macroeconmic Perspective

Distinct Economic Factors for Comparison
Macroeconomic variables are a various set of factors which includes that of economic growth, inflation rates, and rate of consumer consumption, price levels, unemployment levels, and gross domestic product (GDP) and low interest rates.   Macroeconomics looks at the economy as a whole as well the most important economic variable the Gross Domestic Product (GDP) because it is the most extensive way of gauging a country’s economic health as it characterizes the total market value of the goods and services produced within a specific timeframe. Gross Domestic Product figures are used to make comparisons of one country production with that of another country’s and of one year’s production with another year’s.
Gross Domestic Product per capita founded on purchasing power parity (PPP) is the GDP changed to international dollars by means of the purchasing power parity rates. An international dollar has the same purchasing power of GDP as the U.S. dollar has in the United States. Purchasing power parity exchange element is the amount of units of a nation’s money that is a prerequisite in purchasing an equal quantity of goods and services in the domestic marketplace as a U.S. dollar can purchase in the United States. The proportion of PPP exchange factor to market exchange rate is the result obtained by dividing the PPP conversion factor by the market exchange rate. The proportion, namely the national price level, gives the ability to compare the price of the package of goods that frame the gross domestic product (GDP) throughout countries. It tells how many dollars are needed to buy a dollar’s worth of goods in the country as compared to the United States.
GDP purchasing power parity compares the gross domestic product (GDP) or value of all final goods and services produced within a nation in given year. A nation’s GDP at purchasing power parity (PPP) exchange rates is the total worth of all goods and services manufactured in...