The Big Three Performance Variables: Macroperformance of the United States and the Eurozone

Abstract

The "big three" performance variables—growth in real GDP, inflation rate, and unemployment rate—are important starting points for delving into the macroeconomics of any country. This note offers some brief background on the policy environment surrounding performance reporting in the United States and the Eurozone; exhibits show historical performance on each of the big three variables for both. Students are asked to relate important events in the world economy to the path of the three variables from 1999 through mid-2009. Differences in performance in each country/region over time and differences among the regions are also requested in the assignment questions.

Excerpt

UVA-G-0625

October 7, 2009

The Big Three Performance Variables:

MacroPerformance of the United states and the Eurozone

Much of the macroeconomic performance of any country can be discerned by analyzing data of the Big Three performance variables:

1. Growth rate: The annual percentage change in the value of real GDP (GDP adjusted for inflation).

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Keywords: Macroeconomics, Recessions, Inflation, Unemployment