Science of economy is about solving human economic endeavor. These endeavors are, what to produce, how to produce it and for whom produce it for. (Colander 2005)
Economists create economic models and apply those models to the present condition. To come up with the best and efficient model in order to stabilize the economy, and to create a relative rate of growth in order to above mention human needs are met. In order for the studies to be scientific, figures and facts need to be dealt with. Those fact and figures are than tabulated and organized, to become relevant and useful information to reach the desired result.
Economists are using the facts and information collected over certain periods to measure the short-term and long-term conditions, the information is turned into workable models. These concepts will help influence, predict, and steer the economy by government and private organizations to a certain expected direction.
. The effect of economic indicators, influence everyone and every organization, governmental or private. The indicators are the housing industry, Federal Reserve actions, interest rates, the employee situation report, and gross domestic product.
Government can make use of these indicators to set the tone of economic trends. Government makes predictions based on these indicators to establish what the future rate of growth should be. Then by making the most of economic and financial policies the nature of future rate of growths can be forecasted for the desired possible result.
The Housing Industry and Housing Starts
The housing industry is one of the most vital sectors within the US economy. Housing is a necessity for everyone. Thus it is one of the leading indicators of the economy in the country. Building has being going on for centuries. During the Great Depression the FHA was created in order to stimulate...