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Give the main variables that macroeconomics tends to make use of

Economics Dec 14, 2020

Give the main variables that macroeconomics tends to make use of.

Expert Solution

One of the variables that macroeconomics tends to use is GDP. GDP stands for Gross Domestic Product. GDP relates to a macroeconomic variable that represents the overall value of services and commodities that a nation produces within a specific period.

A second variable that macroeconomics tends to make use of is inflation. Inflation refers to the general increase in the price of goods and services within an economy. Inflation is a macroeconomic variable, which determines the change in the price of goods and services.

Lastly, the interest rate is the other variable that macroeconomics tends to make use of. The interest rate refers to a macroeconomic variable representing the amount that financial institutions charge for their customers' services.

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