economic final
TRANSCRIPT
8/8/2019 Economic Final
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An economic indicator is simply any economic
statistic, such as the unemployment rate, GDP, or
the inflation rate, which indicate how well the
economy is doing and how well the economy isgoing to do in the future. As "How Markets Use
Information To Set Price investors use all the
information at their disposal to make decisions.
If a set of economic indicators suggest that the
economy is going to do better or worse in the
future than they had previously expected, they
may decide to change their investing strategy.
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A procyclic economic
indicator is one that
moves in the samedirection as a economy.
So if economy doing
well this number is
usually increasing
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Counter cyclic
A counter cyclical economic
indicator is one that moves in theopposite direction as the
economy. The unemployment rate
gets larger as the economy getsworse so it is a counter cyclic
economic indicator.
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An acyclic economic indicator is one that
has no relation to the health of economyand is generally of little use. The number
of home runs the Monteal expos hit in a
year generally has no relationship to thehealth of the economy, so we could say
it is an acyclic economic indicator
economic indicator
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1,Leading - leading economic indicators are
indicators which change before the economy
changes. Stock market returns are a leadingindicator, as the stock market usually being to
decline before the economy declines and they
improve before the economy being to pull out
of recession. Leading l economic indicator are
the most important type for investor as they
help predict what the economy will belike in
the future
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2, lagged A lagged economic indicator is one
that does not change direction until the fewquarters after the economy does. The
unemployment rate is the lagged economic
indicator as unemployment tends to increase
for 2 or 3 quarters after economy starts to
improve
3, Coincident - a coincident economic indicatoris one that simply moves at the same time the
economy does. The gross domestic product is a
coincident indicator
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1, total output, income, and spending
2, Employment , unemployment and wages
3, production and business activity
4,prices
5, Money, credit, and security market
6, federal market
7 international statistic
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Gross domestic product (GDP)
Real GDPImplicit price def lator for GDP
Business output
National incomeConsumption expenditure
Corporate profits
Real gross private domestic investment
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The unemployment rate
Level of civilian employment
Average weekly hours, hourly
earning, and weekly earningLabor productivity
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Industrial production and capacity
utilization
New construction
New private housing and vacancy rate
Business sales and inventories
Manufacturers, shipment, inventories,
and orders
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Producer prices
Customers pricePrices received and paid
by farmers
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Money stock
Bank credit at all commercial banks
Consumer credit
Interest rates and bond yieldsStock pricces and yields
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Federal receipts
Federal outlayFederal debt
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Industrial production and
consumer prices of majorindustrial countries
U S International trade in goods
and services
U S International transactions
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means how much each individual receives, in monetary termsmeans how much each individual receives, in monetary termsmeans how much each individual receives, in monetary termsmeans how much each individual receives, in monetary termsmeans how much each individual receives, in monetary termsmeans how much each individual receives, in monetary terms, of the yearly income generated in the country. This is
means how much each individual receives, inmonetary terms, of the yearly income generated in
the country. This is what each citizen is to receive
if the yearly national income is divided equally
among everyone. Per capita income is usuallyreported in units of currency per year. When
comparing nations per capita income reflects
gross national product per person, but it is also
used to compare municipalities within nations.When determining the per capita income of a
community, the total personal income is divided by
the population.
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