Unit 4- Economic Indicators
conference board
non gov't entity that compiles and assesses consumer confidence.
Examples of leading indicators include:
unemployment insurance claims, building permits, stock or equity performance.
examples of lagging indicators:
unemployment rate, consumer price index, consumer credit
what perspective is PPI from?
producer's
CPI predicts or reflects?
reflects
consumer price index
reflects a changing price for a fixed bucket of goods and services.
producer price index
reflects the price movement for raw materials, intermediate, and final good production. From a producer's perspective.
consumer confidence presents how far out of an outlook on the economy?
6 months
retail sales
is one leading economic indicator that helps economists predict where the economy is headed
Bureau of Labor Statistics
measures the rate of inflation in our economy.
what is used to measure the price changes or inflation?
CPI and PPI
is retail sales lagging or leading indicator?
leading
what is the best way to describe real GDP
adjusted for inflation to show growth in output
leading indicators
are trends, patterns, or situations that assist in forecasting the economy. They are looking at where the economy is heading.
lagging indicators
are trends, patterns, or situations that provide a clear indication of where the economy has been. (after the fact)
intermediate goods
components used to make the end product
a comprehensive indicator and good predictor of the economy
consumer confidence
what perspective is CPI from?
consumer's
consumer confidence as a consumer indicator
consumers are responing to questions about their current attitudes about the economy and about recent or upcoming purchases.
why is GDP a lagging indicator?
for each year, it is calculates after the year is up. EX: we use our tax returns to figure our our final goods and services
market basket
goods purchased monthly by the typical urban consumer
finished goods
goods that are produced and ready to be distributed/sold
macroeconomic view
if consumers are fearful of an economy downturn, it would end spending and starts to impact firms.
coincident index
indicators that provide a view of the current state of the economy.
a marginalized worker is
one who has given up looking for work
PPI predicts or reflects?
predicts
crude goods
initial inputs in the production process of a good
retail sales are measured by
the census bureau
non- farm payroll
the number of individuals employed outside the farming sector
CPI(2) minus CPI(1) divided by CPI(1) gives us
the rate of inflation
consumer confidence
what is currently happening