It is common practice to only look at one indicator when analyzing the
Economic indicators provide a view of the economy over an extended
period of time.
Economic indicators are inherently macroeconomic.
Trends, patterns or situations that assist in forecasting the economy are
considered lagging indicators.
The costs and benefits of policy accrue differently to different
Unsustainable levels of production could be positive in the short term
and negative in the long term.
We cannot objectively say whether a policy is negative or positive.
Business owners have a clear incentive to only use practices that take
into consideration long term consequences.
This can help reduce unsustainable levels of production
This includes monetary and fiscal policy
Lowering interest rates are an example of this
Too much of this can lead only to inﬂation
An increase in imports will cause a rightward shift in AD.
A recession in one country can have a negative effect on AD in another
Trade surplus occurs when exports exceed imports.
If the dollar is weak, people in other countries will purchase more U.S.
The Chinese central bank printed extra currency to exchange with the
The standard of living in the U.S. increased.
U.S. exports to China increased.
The GDP of the U.S. increased, and the GDP of China decreased.
It decreases consumer willingness to purchase.
AD shifts to the left.
If AD increases past full employment, prices will rise and return us to
It decreases the money supply.
Provides a way to measure inﬂation
Published by the Bureau of Labor Statistics
Captures the price variation between consumer goods, with goods held
Divided up into crude, intermediate and finished goods