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I. There are a large number of statistics produced regularly on the operation of the world's major economies. The UK's economy is no exception in this respect. You will probably have noticed that often the headlines in newspapers or important items on television news programmes relate to economic data and the implications for individuals and businesses. Prime example of A this occurs when interest rates are increased: the media responds by highlighting the adverse effects on businesses with debts and mortgages with householders.
II. Data is provided on a wide range of aspects of the economy's operation. Statistics are available to show:
* the level of unemployment
* the level of inflation
* a country's trade balance with the rest of the world
* production volumes in key industries and the economy as a whole
* the level of wages
* raw material prices, and forth so.
III. The main statistics illustrating the economy's behaviour relate to the level of activity in the economy. Is That, they tell us whether the economy is working at capacity fall using all or nearly all, of available resources labour, machinery and other factors of production or whether these resources are being under-utilized.
IV. The unemployment figures for the economy give an indicator of the level of activity. As the economy moves towards a recession and a lower level of prosperity it is likely that unemployment figures will rise. An alternative measure of the level of activity is national income statistics, which show the value of a nation's output during a year. Economists use the term Gross National Product to describe this data.
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