Economic_Indicators_Paper[1] - Indicators Economic...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Indicators 1 Economic Indicators Economic indicators are figures used by forecasters to predict changes in market economies. There are several economic indicators which together predict changes in the overall level of the economy. In this reading there will be six economic indicators in particular that will be defined and the current status will be described. The economic indicators that will be discussed in this reading are unemployment, inflation, PPI, gross domestic product, auto sales, and personal income. In addition each one of the economic indicators will show a historic trend in the form of a graph. Unemployment is one of the economic indicators that we’ll begin to discuss. The word unemployment is used to describe people who are willing and able to work but whom are not employed. The term unemployment refers to the percentage or number of people who are involuntarily unemployed. There are five different types of unemployment. Three of which are recognized in modern economics. (www.therfcc.org) The first type of unemployment is frictional unemployment, which is transitional unemployment due to people moving between jobs. For example a construction worker could finish a job and be out work until another job becomes available for him to take on. When people are between jobs it is said to be frictionally unemployed. Being in between jobs can happen to almost anyone who is employed. Another form of unemployment recognized by economics is that of cyclical unemployment which means recurring temporary unemployment: the fluctuation in the level of unemployment that coincides with a business cycle. In recessions, we typically see increases in unemployment. The figure below shows unemployment in the period of the Great Depression. This diagram is based on data from the National Bureau of
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Indicators 2 Economic Research (2005). We see employment rising from virtually zero to 25% of the work force in 1933, then rising again to 20% in the recession of 1938. The decline in production in a recession is associated with a decline in the
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 6

Economic_Indicators_Paper[1] - Indicators Economic...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online