Class Notes (835,340)
United States (324,093)
Economics (130)
ECON 1012 (43)

Week 1.docx

2 Pages
Unlock Document

ECON 1012
Irene Foster

Thursday, January 17, 2013 What is GDP and why does it matter? Economic Indicators – Measuring the Health of the Economy  Who measures it? o Governments, universities and private groups  What is measured? o Leading indicators – usually change before the economy changes o Coincident indicators – change about the same time the economy is changing o Lagging indicators – usually change after the economy changes Leading Economic indicators  Predict activity in the economy about 6-9 months in the future o Manufacturer’s new orders for consumer and capital goods o Money supply (M2) o S&P 500 stock index (stock-market index—investors faith in the market) o Index of consumer expectations (University of Michigan) Lagging Economic indicators  Lag behind the economy by several quarters o Average duration of unemployment o Ratio of inventories to sales o Average prime rate/interest rate charged by banks o Change in labor cost per unit of output Coincident Economic indicators (current state of the economy)  Provide info about the current state of the economy o Gross Domestic Product o Industrial production o Personal income o Retail sales Key Indicators of Interest to Macroeconomists  GDP  The inflation rate  The unemployment rate Fiscal Cliff  Fiscal= US budget o Taxation: income for the US government o Spending: defense, social programs, welfare, education, infrastructure, transportation  In the summer of 2011, Congress had a fight over the debt limit the US was able to have  Republicans said cut spending to pay back the debt  On Dec. 31 2012, if no decision was made tha
More Less

Related notes for ECON 1012

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.