1. Gross Domestic Product (GDP)
3. Interest rates
4. Consumer Price Index (CPI)
5. Unemployment rate
6. National Income
7. National Budget
8. Producer Price Index
9. Labor force
10. International Trade
Gross domestic product (GDP) is the value of all goods and services produced in a country during a given period. One way to determine the GDP is to add up the sum of spending on four kinds of goods and services in any year.
1. Personal consumption expenditures include private spending on durable goods and nondurable goods. In the United States, these expenditures make up about two-thirds of the GDP each year.
2. Private investment expenditures include spending by businesses for new buildings, machinery, and tools. Also included is spending for goods to be stored for future sale.
3. Government purchases of goods and services include spending for new highways, defense, and the wages of teachers, fire fighters, and government employees.
4. Net exports represent the value of domestically produced goods and services sold abroad, less the value of goods and services purchased from abroad during the same period.
GDP is important because it measures of a nation's total economic performance in a single year.
Inflation is a continual increase in prices throughout a nation's economy. During an inflationary period, a certain amount of money buys less than before. For example, a worker may get a salary increase of 10 percent. If prices remain stable, the worker can buy 10 percent more goods and services. But if prices also increase 10 percent, the worker's purchasing power has not changed. It's important to control inflation because it can cripple an economy by reducing the buying power of the dollar.
There are a number of loan markets, including those for consumer loans, home mortgages, corporate bonds,