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