TD-Economic Indicators - future for growth or decline 2...

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Economic Indicators-Dr. Babb Economic indicators are economic statistics that tell us how well the economy is doing. The GDP, unemployment rate, and inflation rate are the most common macroeconomic indicators. The change in the GDP tells us whether the economy is in an expansion or recession. GDP is the total value of all final goods and services produced in within a country in a given year. 1. Do you think the GDP is a good indicator of economic well-being? Just as in the background reading, GDP is a prime indicator for economic health of a nation. It is a good indicator, however, it cannot be the sole source of information to analyze a nations economic growth or decline. The GDP indicates growth or decline from previous benchmarks, such as the previous year's GDP figures, or the previous five years. Combining unemployment rate, inflation rate, interest rates, and the CPI provide a better picture of a nation's economic health, as well as determining a predictive
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Unformatted text preview: future for growth or decline. 2. What other factors do you think contribute to a good standard of living? Factors to a good standard of living must be measured by the socio-economic class to which is being analyzed. Those in the upper-class are more privileged, and feel less pain in a declining market. They're harder to use as the benchmark for a good standard of living for a nation, as they have more disposable income. However, when you study the middle- and lower-class income earners, you can better determine when more luxury goods are being purchased, or when more costlier homes are being purchased. Some of the best factors to determine a good standard of living are life expectancy increases, infant mortality rates declines, unemployment decreases, more personally owned automobiles are being purchased and driven on the roads, infrastructure improves, etc....
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