Unit 11 - Economic Indicators Flashcards
This is the study of supply and demand
Economics
When people want to buy an item that is in short supply, the item’s price
Rises
When people do not want to buy an item that is in plentiful supply, the price
Declines
A national annual economic output- all the good and services produced within the nation - is know as its
Gross Domestic Product (GDP)
The United States ____ includes personal consumption, government spending, gross private investment, foreign investment, and net exports. It counts all activity that occurs within the confines of the nations boundaries, even if the activity if generated by a foreign entity.
GDP
In the United States, when are GDPs released?
Quarterly by the Commerce Department
The most prominent measure of general prices changes is the
Consumer Price Index (CPI)
This measures the rate of increase or decrease in a broad range of consumer prices, such as food, housing, transportation, medical care, clothing, electricity, entertainment and services.
CPI
When is the CPI computed?
Each month
The GDP figures reflect
Actual growth
When analysts use the CPI to account for changes in the costs of goods to adjust for inflation or deflation, this is called
The real GDP and it is a constant dollar (inflation adjusted) measurement.
The term ___ ____ ____ is sometimes used for CPI.
Constant dollar measurement
This is based not on the activity that occurs within the country but on the activity of the citizens and entities of the nation, wherever it may occur. It is published by the Commerce Department on a quarterly basis.
Gross National Product (GNP)
These are indicators that tend to change direction ahead of the overall economy.
Leading indicators
The following list are example of what indicators?
- Money supply
- Building permits
- Average weekly initial claims for state unemployment compensation
- Average work week in manufacturing
- New orders for consumer good
- Machine tool orders
- Changes in inventories of durable goods
- Changes in sensitive materials prices
- Stock prices
- Changes in business and consumer borrowing
Leading Indicators