Adriana La Cerva joined the research department of IFA last month as an intern of financial analyst.
Question:
Adriana La Cerva joined the research department of IFA last month as an intern of financial analyst. Her primary job consists of collecting macroeconomic indicators of Organisation for Economic Co-operation and Development (OECD) countries. Recently, Andriana was assigned to collect appropriate macroeconomic indicators for Australia that properly reflect the output of the country.
Andriana searches for the list of major industries of Australia on IBISWorld before starting to collect for the data of macroeconomic indicators. The list of top 5 major industries in Australia is shown below. With the list, Andriana decides the Industrial Production Index is not an appropriate indicator to gauge Australia's aggregate output.
The 5 biggest industries by Revenue in Australia
Finance in Australia 195.6 B
Professional Service in Australia 173.3 B
Consumer Foods Retailing in Australia 150.0 B
Health Services in Australia 149.6 B
National and Regional Commercial Banks in Australia 147.5 B
Q: Is Andriana's decision of not using the Industrial Production Index to estimate Australia's aggregate output justifiable? Why?