Key Economic Indicators and Calculation Formulas
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1. Economic Growth Rate
The economic growth rate is the percentage increase in the Real GDP:
[(New Real GDP - Old Real GDP) / (Old Real GDP)] x 100
Example: If the Real GDP grows from 80 to 100, then the:
Economic Growth Rate = [(100 - 80) / 80] x 100 = (20 / 80) x 100 = 0.25 x 100 = 25%
2. Unemployment Rate
The components are defined as:
- Labor Force = Employed + Unemployed
- Unemployment Rate = [Unemployment / Labor Force] x 100
Example: If Employment = 95 and Unemployment = 5, then:
Labor Force = 95 + 5 = 100
Unemployment Rate = [5 / 100] x 100 = 5%
3. Industrial Capacity Utilization Rate
This rate measures:
[(Actual Production Level) / (Maximum Possible Production Level)] x 100
Example: If a factory can produce at most 1,000 units a month and it is actually... Continue reading "Key Economic Indicators and Calculation Formulas" »