Macroeconomics Focus On
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Real GDP
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Unemployment rate
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Inflation rate
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Government's economic policy
Real GDP
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Measures the output of goods and services
produced in an economy over a fixed period,
usually a year
In Turkey at 2016 the GDP per capita was
25.655 $
Turkish economy is expected to grow at a rate o
f 4.7 during 2019
Growth rate of GDP in Turkey (%)
15
10
5
0
1998
-5
-10
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
GDP per capita growth rate (%)
40,0
30,0
20,0
10,0
0,0
1998
-10,0
-20,0
-30,0
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
Questions in Macroeconomics
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What does per capita mean?
Business cycles: real GDP grows unevenly over time and
fluctuates over a trend
Recession: Decline in economic activity and fall in GDP
per capita
Depression: When decline in real GDP is severe. Most
famous is Great Depression of 1929-1933
Employment
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Unemployment rate= unemployed/workforce
Unemployed: Number of workers who are actively lookig for
work
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Unemployment rate is always bigger than zero because of:
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1) Structural unemployment
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2) Seasonal unemployment
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3) Frictional unemployment
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Unemployment rises during recessions
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Unemployment rate was 10.9 % in Turkey in 2016
Unemployment Rate (%)
14,0
12,0
10,0
8,0
6,0
4,0
2,0
0,0
2004
2006
2008
2010
2012
2014
2016
2018
Inflation Rate
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Inflation rate: The rate at which the overall level of prices
are rising
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Deflation: Overall price level is falling
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Turkish inflation rate was 11.4 % at 2017
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Hyperinflation: Very very high inflation rates, more than
%1000
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Example to hyperinflation: Zimbabwe, >2000000%
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Turkish inflation rate used to be %50-%100 in the past
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Why is inflation bad?
Inflation Rate (%) in Turkey
12,00
10,00
8,00
6,00
4,00
2,00
0,00
2002
2004
2006
2008
2010
2012
2014
2016
2018