Q. Describe the macroeconomic variables?
In this section we have summarizes all the macroeconomic variables. The first column denotes the symbol we use for variable whereas column 2 shows the name of variable.
|
Variable
|
Variable name
|
|
Y
|
Real GDP
|
|
P
|
Price level
|
|
P.Y
|
Nominal GDP
|
|
U
|
Unemployment
|
|
L
|
Hours worked
|
|
K
|
Amount of capital
|
|
W
|
Nominal wage
|
|
W/P
|
Real wage
|
|
M
|
Money supply (nominal)
|
|
R
|
Nominal interest rate
|
|
r
|
Real interest rate
|
|
C
|
Private consumption (real)
|
|
I
|
Investments (real)
|
|
G
|
Government expenditure (real)
|
|
NT
|
Net tax (real)
|
|
X
|
Exports (real)
|
|
Im
|
Imports (real)
|
|
NX
|
Net exports (real)
|
|
SH
|
Household savings (real)
|
|
SG
|
Government savings (real)
|
|
SR
|
Rest of the world savings (real)
|
|
p
|
Inflation
|
|
pe
|
expected inflation
|
|
pw
|
Wage inflation
|
|
pM
|
Growth in money supply
|
|
E
|
Exchange rate
|
|
pE
|
Depreciation in exchange rate
|
Two of the variables are stock variables: K and M. Prices can't be characterized as a stock or flow variable. P, W, R, r and E apply at a given point in time whereas p, pe, pw and pE apply over a period of time. p, pw and pE are changes in P, W and E during previous time period while pe is the expected change in P during next time period. All the other variables are flow variables measured in some unit per unit of time (for instance, L is the number of hours worked per year or per any other unit of time).