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Measurment of Aggregate Economic Activity by Means of Composite Indicators

The assessment of composite indicators is a new experience for East European countries. However, in the course of transition from central planning toward market economy the need for measurement of aggregate economic activity is obvious.

The Agency for Economic Cooperation & Development /AECD/ experts have begun to asses three barometers of aggregate economic activity since March 1992: economic activity barometer, economic expectation barometer and diffusion index. In that paper we share our experience on the assessment of composite indicators and their utilization in analyzing performance of Bulgarian economy on macro level.

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