ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Unemployment
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Consumer Price Index
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Inflation
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Gross Domestic Product (GDP)
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Detailed explanation-1: -Economic indicators include measures of macroeconomic performance (gross domestic product [GDP], consumption, investment, and international trade) and stability (central government budgets, prices, the money supply, and the balance of payments).
Detailed explanation-2: -GDP is important because it gives information about the size of the economy and how an economy is performing. The growth rate of real GDP is often used as an indicator of the general health of the economy. In broad terms, an increase in real GDP is interpreted as a sign that the economy is doing well.
Detailed explanation-3: -Leading indicator examples include the Consumer Confidence Index, Purchasing Managers’ Index, initial jobless claims, and average hours worked.
Detailed explanation-4: -Since the real GDP measures the entirety of the U.S. economy, it’s considered to be a key indicator of economic health. The real GDP is most often framed in terms of its percentage growth or decline. When the real GDP increases, it suggests businesses are producing a higher value of goods and services.