Principles of Macroeconomics / Unit 18 MAC 1733 worked example, 60 to 90 seconds
Reading a Data Table
The idea
Extract what a table actually says before answering. Check three things in order: what units each column is in, whether the figures are real or nominal, and whether they are levels or rates of change. Most table questions are testing one of those three rather than the economics.
In practice
A table shows output rising from 20,000 to 26,000 and a price index rising from 100 to 125. The question asks whether the economy grew. Real output rose from 20,000 to 20,800, so it grew about 4 percent. A second table shows unemployment at 5.4, 4.1, 5.4, 6.8 and 5.4 percent against inflation at 2.0, 4.5, 5.0, 3.2 and 7.5 percent. The question asks for the natural rate. Unemployment returns to 5.4 at three very different inflation rates, so 5.4 is the natural rate. A third table shows a deficit of 120, then 90, then 40. The question asks what happened to the debt. It rose every year.
Where people slip
Each of those three used a different reading skill and none needed a formula. The traps are the same each time: comparing nominal figures across years, averaging when you should look for a recurring value, and confusing a flow with the stock it feeds.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Unlocks
- Nothing yet depends on this.
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