Which economic indicators are studied in macroeconomics?

Macroeconomics focuses on the economy as a whole rather than individual markets or transactions. It studies aggregate indicators that reflect the overall state of economic performance and health. In this context, the unemployment rate and inflation are critical indicators analyzed by macroeconomists because they provide insights into the labor market and price stability, respectively.

The unemployment rate indicates the percentage of the labor force that is jobless, highlighting the health of the job market and overall economic activity. High unemployment can suggest economic distress, while low unemployment often reflects a robust economy. Meanwhile, inflation measures the rate at which the general level of prices for goods and services rises, eroding purchasing power when it is too high or potentially indicating weak demand when it is too low.

These indicators help policymakers and economists understand economic trends, formulate policies, and make decisions aimed at stabilizing and promoting economic growth. Thus, the unemployment rate and inflation are fundamental elements under study in macroeconomics.