ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Consumer Price Index
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Consumer Spending
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Unemployment rates
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Inflation
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Detailed explanation-1: -In the US, whys is there a strong correlation between unemployment and GDP? Consumer spending accounts for 2/3 of the US economy. When the number of unemployment rises, there is less consumer spending. Here is a chart showing both nominal and real GDP growth for a country.
Detailed explanation-2: -Published quarterly by the U.S. Department of Commerce, the GDP is perhaps the greatest indicator of a country’s economic health.
Detailed explanation-3: -The unemployment rate is one of the most reliable lagging indicators. If the unemployment rate rose last month and the month before, it indicates that the overall economy has been doing poorly and may well continue to do poorly.
Detailed explanation-4: -Leading indicator examples include the Consumer Confidence Index, Purchasing Managers’ Index, initial jobless claims, and average hours worked.