ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Personal income
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The ratio of how much consumers owe to measures of personal income
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Stock prices
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None of the above
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Detailed explanation-1: -The gross domestic product (GDP) of an economy is also a coincident indicator.
Detailed explanation-2: -A coincident indicator is an economic statistical indicator that changes (more or less) simultaneously with general economic conditions and therefore reflects the current status of the economy. Typical examples of coincident indicators are industrial production or turnover.
Detailed explanation-3: -Real GDP is a better indicator of economic growth because it can be compared with base year GDP.
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.
Detailed explanation-5: -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).