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Paul [167]
3 years ago
6

List five of the most widely followed indicators of the economy.

Business
1 answer:
Kobotan [32]3 years ago
3 0

Answer:

1. Gross Domestic Product

GDP represents the market value of all final goods and services produced within a country during a given period. The figure is usually given in nominal and real formats, with real GDP adjusting for changes in monetary value. Given its vast breadth, this indicator is among the most-watched by the financial markets.

The expansion of a country's GDP is indicative of a growing economy, while a contraction in GDP indicates a slowdown in a country's economy. Meanwhile, a country's projected GDP growth rate can be used to determine an appropriate level of sovereign debt or determine if companies operating within the country are likely to experience growth.1

2. Employment Indicators

The productivity and wealth of a country's citizens is arguably the ultimate determiner of economic success. Employment indicators, such as labor force, payroll, and unemployment data estimate how many citizens are employed and whether they are making more or less money than before.

The financial markets carefully watch these employment indicators, especially in developed countries that generate most of their income from domestic consumer spending. A fall in employment is often followed by a fall in consumer spending, which can hurt GDP statistics and overall economic growth prospects.2

3. Consumer Price Index

CPI measures changes in the prices of consumer goods and services that are purchased by households. The index is a statistical estimate created by using prices from a sample of representative items collected periodically. Often times, this measure is used as a gauge of inflation, which can positively or negatively affect a country's currency.3

The financial markets carefully watch CPI figures for signs of inflation. Rising inflation can lead to higher interest rates and reduced lending, while deflation can lead to lower interest rates and greater lending.4

4. Central Bank Minutes

Central banks create monetary policy and exert significant control over a country's economy. Consequently, the financial markets tend to listen closely to every word that central bankers utter publicly for clues about the future. Central bank minutes are formal releases that contain valuable economic commentary that can signal future policy action.5

In the U.S., the Federal Reserve issues what's called the Beige Book, which contains anecdotal information about current economic conditions from each Federal Reserve Bank. Similar notes are released by many other central banks, including the Bank of Japan, European Central Bank (ECB), and others on a regular or semi-regular schedule.6

5. PMI Manufacturing & Services

The Purchasing Manager's Index (PMI) is an economic indicator developed by Markit Group and the Institute for Supply Management. By polling businesses on a monthly basis, the index reflects the acquisition of goods and services by purchasing managers. The two most important surveys are the PMI Manufacturing and PMI Services indices.

The financial markets watch the PMI Manufacturing and PMI Services indices as key leading economic indicators because companies stop purchasing raw materials when demand dries up. This can indicate problems in an economy much before other reports like retail sales or consumer spending

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Jorge has a debt ratio of 37 percent and jose has a ratio of 102 percent. they both have the same takeminus−home pay every month
sasho [114]
<span>Jorge has a debt ratio 37% which means he has more money to spend for the month, Jose has debt ratio of 102% which means he has relatively less money to spend in the current month and their take home pay is same. So their current financial situation is Jorge is currently solvent where as Jose is currently insolvent. So these are the conclusion drawn from their debt ratios.</span>
7 0
3 years ago
A manufacturer of brand A jeans has daily production costs of Upper C equals 0.3 x squared minus 120 x plus 12 comma 585​, where
makvit [3.9K]

Answer:

a. 200 jeans should be produced each day in order to minimize​ costs.

b. The minimum daily​ cost is $108,585

Explanation:

a. How many jeans should be produced each day in order to minimize​ costs?

Given C = 0.3x^2 - 120x + 120,585 ........................... (1)

Cost is minimized when MC = C' = 0

To obtain MC, equation (1) is differentiate with respect to x as follows:

dC/dx = MC = C' = 0.6x - 120 = 0 ............................... (2)

From equation (2), we can now solve for x follows:

0.6x - 120 = 0

0.6x = 120

x = 120 ÷ 0.6

x = 200

Therefore, 200 jeans should be produced each day in order to minimize​ costs.

b. What is the minimum daily​ cost?

Substitute 200 for x in equation (1) to have:

C = 0.3(200^2) - 120(200) + 120,585

   = 12,000 - 24,000 + 120,585

C = $108,585

Therefore, the minimum daily​ cost is $108,585.

8 0
3 years ago
Read 2 more answers
The economy of Elmendyn contains 2,000 $1 bills. a.If people hold all money as currency, the quantity of money is $ . b.If peopl
atroni [7]

Answer:

(a) $2,000

(b) $2,000

(c) $2,000

(d) $8,000

(e) $3,200

Explanation:

Given that,

Number of bills = 2,000

Worth of each bill = $1

(a) If people hold all money as currency, then the quantity of money is determined as follows:

= Number of bills × Worth of each bill

= 2,000 × $1

= $2,000

(b) If people hold all money as demand deposits and banks maintain 100 percent reserves,

Money multiplier = 1/ Reserve requirement ratio

                            = 1/1

                            = 1

Quantity of money:

= Money multiplier × Demand deposits

= 1 × $2,000

= $2,000

(c) If people hold equal amounts of currency and demand deposits and banks maintain 100 percent reserves,

Therefore,

Currency = $1,000

Demand deposits = $1,000

Quantity of Money:

= Currency with public + Demand deposits

= $1,000 + $1,00

= $2,000

(d) If people hold all money as demand deposits and banks maintain 25 percent reserves,

Money multiplier = 1/ Reserve requirement ratio

                            = 1/0.25

                            = 4

Quantity of money:

= Money multiplier × Demand deposits

= 4 × $2,000

= $8,000

(e) If people hold equal amounts of currency and demand deposits and banks maintain 25 percent reserves,

Now, we know that

Currency = Demand deposits .....(1)

Banks maintain 25 percent reserves,

4 × ($2,000 - Currency) = Demand deposits

4 × ($2,000 - Demand deposits) = Demand deposits

$8,000 = 5 Demand deposits

$1,600 = Demand deposits

Therefore, the currency = $1,600

Quantity of money:

= Currency + Demand deposits

= $1,600 + $1,600

= $3,200

8 0
3 years ago
If consumers start to believe they need a product, what is likely to happen?
suter [353]
B. The demand becomes more elastic
4 0
3 years ago
What modern-day learning technique is most similar to apprenticeship?
melamori03 [73]

Answer:

Elementary school, where students learn academic and social skills under the constant supervision of an adult

5 0
3 years ago
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