4.2.1.2 - Macroeconomic Indicators

Real GDP =

Total value of goods and services produced in an economy, over a period of time, adjusted for inflation

Lead Indicator

A performance indicator that provides information about the FUTURE state of the economy

Lag Indicator

A performance indicator that provides information about PAST and possibly CURRENT economic perfomance and the extent to which policy objectives have been achieved.

Performance Indicator

Provides information for judging the success or failure of a particular type of government policy (such as fiscal policy or monetary policy) in meeting the macroeconomic objectives

i.e. information for judging how well an economy is performing relative to its macroeconomic objectives

Real GDP Formula

(Nominal GDP) / (Price Index or GDP Deflator) x 100