Lecture notes BBA in Logistics and Supply chain management (BLG1)

Chapter 13:
Measuring the
performance of
the economy

, LEARNER OUTCOMES
Once you have studied this chapter you should be able to
• explain the five main macroeconomic objectives
• explain what the national accounts represent
• define the most important national accounting concepts
• show how the basic national accounting concepts are
linked
• define the unemployment rate
• define and interpret the consumer price index (CPI)
• explain the balance of payments
• explain a Lorenz curve and the Gini coefficient


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Master ECONOMICS FOR SOUTH AFRICAN STUDENTS
title
style
CHAPTER 13: MEASURING THE PERFORMANCE OF THE ECONOMY

, LO: Explain the five main macroeconomic objectives




13.1 MACROECONOMICS
OBJECTIVES
The five macroeconomic objectives
Economic Full Price Balance of Equitable
growth employment stability payments distribution
stability of income




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Master ECONOMICS FOR SOUTH AFRICAN STUDENTS
title
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CHAPTER 13: MEASURING THE PERFORMANCE OF THE ECONOMY

, LO: Explain what the national accounts represent
LO: Define the most important national accounting concepts
LO: Show how the basic national accounting concepts are linked




13.2 MEASURING THE LEVEL
OF ECONOMIC ACTIVITY:
GROSS DOMESTIC PRODUCT
• The first step in measuring economic growth is to determine a
country’s total production of goods and services in a specific
period.
• Performed by the national accounting sections of Statistics South
Africa (Stats SA) and the South African Reserve Bank (SARB).
• The central concept in the national accounts is the gross domestic
product (GDP).
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Master ECONOMICS FOR SOUTH AFRICAN STUDENTS
title
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CHAPTER 13: MEASURING THE PERFORMANCE OF THE ECONOMY