ECON 1012 Lecture Notes - Simon Kuznets, Bicycle Tire, S&P 500 Index
Document Summary
Economic indicators measuring the health of the economy. Who measures it: governments, universities and private groups. What is measured: leading indicators usually change before the economy changes, coincident indicators change about the same time the economy is changing, lagging indicators usually change after the economy changes. Lag behind the economy by several quarters: average duration of unemployment, ratio of inventories to sales, average prime rate/interest rate charged by banks, 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: gross domestic product, industrial production, personal income, retail sales. Fiscal= us budget: taxation: income for the us government, 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.
