Part II: Measurement in Economics

Part II discusses key measures used in Economics and Finance, detailing the sources from which this data originates. This includes both macroeconomic figures like GDP and unemployment as well as financial measures such as interest rates and stock market indices.

Included chapters:

• Chapter 7: “Economic Data Sources” explores various indicators that provide insights into the health and direction of economies and markets, and introduces key data providers.
• Chapter 8: “Business Accounting” discusses how accounting is a systematic method of recording, analyzing, and summarizing financial transactions. The outcome of accounting is a comprehensive snapshot of a company’s financial health, communicated through financial statements.
• Chapter 9: “Financial Performance Indicators” discusses key numbers that provide a comprehensive view of a company’s financial health. These indicators are based on the three major financial statements: the balance sheet, income statement, and cash flow statement, introduced in Chapter 8.
• Chapter 10: “Macroeconomic Accounting” explains how key economic indicators are systematically measured and recorded to assess the performance and stability of an economy. It covers essential metrics such as GDP, consumption, investment, international trade, government budgets, prices, money supply, and the balance of payments.
• Chapter 11: “Financial Market Indicators” delves into topics such as interest rates, stock market metrics, and indicators of financial stability.