Economic Indicator Paper

Essay by njg429College, UndergraduateB+, August 2007

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Economic Indicator Paper: Learning Team Week 2 � PAGE \* MERGEFORMAT �3�


Economic Indicator Paper

Learning Team 'C'

Nancey Grant

University of Phoenix


Mohammad Chaudry

February 23, 2007



Six Economic Indicators

Unemployment Rate: The unemployment rate is determined from the working segment of the population. It is a good measure of the general trends of income and production, but is higher than it ought to be because of the uncounted disgruntled workers. These rates are ideally greater than zero, although excessive unemployment is obviously a great concern. The economy has a lot to do with the unemployment rate, as inflation, price levels, supply and demand, and many other factors have relationships with levels of employment.

Real Gross Domestic Profit: Real GDP is the value of final output produced in a given time period, adjusted for changing prices. Real GDP is the inflation adjusted value of nominal GDP.

Real GDP is calculated by adjusting the market value of goods and services for changing price. GDP indicates the current health of an economy. It is the basic measure of an economy's size. GDP provides a useful perspective on the way the economy works. It shows how factor markets relate to product markets. It shows how output relates to income. It shows how consumer spending and business investment relate to production. It also shows how the flow of taxes and government spending may alter economic outcomes. Inflation Rate: Inflation is defined as an increase in the average level of prices of goods and services in an economy. It is also defined as the overall general upward price movement of goods and services in an economy, usually as measured by the Consumer Price Index and the Producer Price Index. The Consumer Price Index (CPI) measures inflation...