What you'll learn
How the health of the whole economy is measured.
Key ideas
- GDP, inflation (measured by the CPI), unemployment and economic growth.
- A recession is two quarters of falling GDP.
- Government objectives: growth, low unemployment and low, stable inflation.
Exam tips
- Define each indicator precisely.
- Link objectives to policy.
Common mistakes
- Confusing inflation with deflation.
- Mixing up growth and recession.