Economic indicators are used to measure the financial health of the economy. There are many methods and tools for measuring the economy and every economist has his favorite method. The health of the economy is measured by tracking certain indicators. Different economists use these indicators in various combinations. Some economists place more or less weight on different ones in making their predictions about which direction the economy will go. It is important to note the differences in measurement when assessing the opinions of popular economists of today.
This paper will be primarily concerned with the indicators, which would indicate whether we are currently in an inflationary economy or a deflationary economy. A recession occurs when real GDP declines for two successive quarters. However, the National Bureau of Economic Research (NBER) officially defines a recession as a "significant decline in activity spread across the economy, lasting more than a few months." That becomes a depression when the GDP decline is protracted (Clifford, 2001). This difference in definition is why one hears news broadcasters fail to agree as to whether we are in a recession or not. It may meet one definition, but not the other.
According to Forbes Magazine, February 28, 2002, the GDP has grown consistently throughout 2001, though sometimes this growth may have been slow. The only time when the GDP decreased was third quarter 2001 when it dropped 1.3%. It quickly recovered and has shown strong growth since that time (Morrison, 2002). The drop in the GDP in the third quarter of 2001 may have been due to the terrorist attacks on the World Trade Tower, which shook consumer confidence in certain sectors, especially the transportation industry.
At the close of the day April 22, 2002 the inflation rate was 1.32, the GDP growth was 1.70, the Unemployment rate was 5.70, gold was at 303.70 per troy ounce and The Prime lending rate was 4.75. These numbers are according to the Financial Forecast Center (2001). Unemployment way up.1 from last quarter, but...
This economic indicator can be used to determine inequality within a given region or area. It can also be view the capacity for individuals within a particular nation to consume b. Rate of Value- $41,560 c. Source of Information- "Per Capita Personal Income U.S. And All States." Per Capita Personal Income U.S. And All States. Bureau of Business & Economic Research, 12 Oct. 12. Web. 02 Feb. 2013. d. Date of information-
The outlook was very negative in August and September -- there were some serious issues such as the debt ceiling debate that could have been responsible for the strong negative outlook. The outlook has turned slightly positive of late though, an encouraging sign. Overall, the data provides a mixed signal about the state of the economy. The major headline numbers -- GDP and unemployment -- are improving. This is supported
Economic Indicators The change in the United States Real Gross Domestic Product (GDP) ratings has shown both ups and downs in the U.S. economy over the last two years. In the most recent quarter, the first quarter of 2011, the U.S. GDP increased over 2%. While the GDP has increased every quarter since mid-2009, the quarterly increase in each of the last four reported periods was weaker than the quarterly increase
Economics The Impact of Three Economic Indicators on Amazon The way any organization performs will reflect a number of factors; one of the major factors will be the macro environment. Amazon.com, a major online retailer, can be considered in the context of the macro-economic by looking at the way that firm is impacted by different economic patterns. Three macro-economic indicators; personal income and outlay, producer prices index and the retail sales report
Macroeconomic Indicators Select macro-economic indicators feel greatest impact operations / planning DirecTV. Remember economic indicator measures a change general a specific aspect economy assessing macro-economic change chosen affects DirecTV Satellite Company. DirecTV Satellite DirecTV Satellite Company specializes in providing digital satellite broadcasting service in the Latin America and the United States. It has a customer base close to 20 million subscribers offering 1800 channels, various movie and sports packages, High definition channels, and
Housing Starts This leading economic indicator tracks how many new single-family homes or buildings were constructed throughout the month. For the survey each house and each single apartment are counted as one housing start, (a building with 200 apartments would be counted as 200 housing starts). The figures include all private and publicly owned units, with the only exception being mobile homes, which are not counted. The housing industry accounts for about
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