Unit 11: Economic Indicators
The most commonly referenced indicator of economic activity is
GDP.
The economic indicator that reflects activity of U.S. entities without regard to where the activity takes place is
GNP.
Which of the following is a coincident indicator?
Household income
Which of the following is a lagging indicator?
Increase in the consumer loans to personal income ratio
Which of the following is a leading indicator?
New orders for consumer goods
All the following are coincident indicators except
changes in durable goods inventories.
The monthly unemployment figure is considered a
coincident indicator.
All of these are leading economic indicators except
duration of unemployment.
A measure of a nation's citizen's economic activity is
gross national product.
Stagnation in the economy can be associated with
high unemployment.
An economic event where consumers experience an extreme increase in the cost of goods in a short period is
hyperinflation.
When consumer prices are increasing at a steady but reasonable rate this is considered a healthy level of
inflation.
An economic indicator that tends to change direction following a change in the direction of GDP is a
lagging indicator.
An analyst is trying to determine upcoming economic activity to better determine her recommended investment strategy. She would be most interested in
leading indicators.
All the following are lagging indicators except
personal income.
All the following are leading indicators except
personal income.
Economic growth has slowed to a halt with little consumer demand, but prices for goods and services are still rising. This is known as economic
stagflation.
Increasing cost of goods and services and high unemployment are characteristics of
stagflation.
The economy is showing that employment is low, there is little consumer demand, and loans for expansion and retooling are way down, showing a lack of business activity. Yet prices for consumer goods are still rising. Economists would call this a period of
stagflation.
The nation is experiencing a rapid increase in the cost of living, but wages are not keeping pace with the increase in cost. The nation is experiencing
stagflation.
Economic reports show that there is a general rise in prices for consumer goods and a high unemployment rate occurring simultaneously. This combination can best be described as
stagnation
An extended period of little or no growth in GDP, wages, and prices is a period of
stagnation.
Several months of slow economic growth and rising unemployment have characterized the economy. Market analysts would describe this as a period of
stagnation.
The most common way of measuring purchasing power risk is
the CPI.
The consumer price index is a measure of
the change in prices.
