...Catherine Levitt Product Purchased and the Economy Economic Indicators “A piece of economic data, usually of macroeconomic scale, it is used by investors to interpret current or future investment possibilities and judge the overall health of an economy” divided in two types, leading and lagging. Leading indicators are those that predict future trends, they are not accurate though, while lagging indicators reflect the historical performances and changes before the economy starts to follow a trend. Inventory Levels is considered a one of the leading economic indicators, meaning that changes in a variable such as business inventories can lead to changes in the future condition of the economy. High inventory levels can reflect two different things: either that demand for inventory is expected to increase or that there is a current lack of demand (Smith, 2015). On the other hand, there is the Consumer Price Index (CPI) a lagging economic indicator that is used to measure the price levels of consumer goods, and reflects inflation. Smith (2015) says “A high rate of inflation may erode the value of the dollar more quickly than the average consumer’s income can compensate. This, thereby, decreases consumer purchasing power, and the average standard of living declines. Moreover, inflation can affect other factors, such as job growth, and can lead to decreases in the employment rate and GDP”. With these economic indicators in mind, supply and demand for consumer durables can be...
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...Executive summary In this empirical report, we have analyze the characteristics of several important economics indicators and how they can be use by economist to look out for period of inflation, sharp changes in GDP growth due to GST and oil shock and how to make use of this indicators to do a projection on the economy performance. We also come to understand how different types of economic indicators are used and how they correspond to the movement economy activities. Understanding the characteristic of these economic indicators, allows us to identify the cyclical nature of each individual indicator with economic growth and, thus, help us in choosing a set of economic indicators for forecasting the economic performance. To conclude, we state that by doing an economic indicator analysis through leading, coincident and lagging indexes, we can understand how well the economy performance as a whole. It also tells us the relationship between economy performance and the policy-making of a country. Introduction The measurement and analysis of business cycles has been one of the important research topics in economics and underlying theories of these economics arguments have changed as times goes by. In this empirical report, attention will be focus into the central questions on the causes of fluctuation in the economic activity by constructing a business cycle analysis and composite coincident index, a combination of several time series that one would expect to contain...
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...Introduction: An economic indicator is simply any economic statistic, such as the unemployment rate, GDP, or the inflation rate, which indicate how well the economy is doing and how well the economy is going to do in the future. If a set of economic indicators suggest that the economy is going to do better or worse in the future than they had previously expected, they may decide to change their investing strategy. Economic indicators include various indices, earnings reports, and economic summaries. Examples: unemployment rate, quits rate, housing starts, Consumer Price Index (a measure for inflation), Consumer Leverage Ratio, industrial production, bankruptcies, Gross Domestic Product, broadband internet penetration, retail sales, stock market prices, money supply changes. Three Attributes of Economic Indicators 1. Relation to the Business Cycle / Economy Economic Indicators can have one of three different relationships to the economy: 1. Procyclic: A procyclic (or procyclical) economic indicator is one that moves in the same direction as the economy. So if the economy is doing well, this number is usually increasing, whereas if we're in a recession this indicator is decreasing. The Gross Domestic Product (GDP) is an example of a procyclic economic indicator. 2. Countercyclic: A countercyclic (or countercyclical) economic indicator is one that moves in the opposite direction as the economy. The unemployment rate gets larger as the economy gets worse so...
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...Journal of Business Economics and Management ISSN: 1611-1699 (Print) 2029-4433 (Online) Journal homepage: http://www.tandfonline.com/loi/tbem20 Evaluation of some business macro environment forecasting methods Vulfs Kozlinskis & Kristine Guseva To cite this article: Vulfs Kozlinskis & Kristine Guseva (2006) Evaluation of some business macro environment forecasting methods, Journal of Business Economics and Management, 7:3, 111-117 To link to this article: http://dx.doi.org/10.1080/16111699.2006.9636131 Published online: 14 Oct 2010. Submit your article to this journal Article views: 1769 View related articles Citing articles: 1 View citing articles Full Terms & Conditions of access and use can be found at http://www.tandfonline.com/action/journalInformation?journalCode=tbem20 Download by: [86.20.58.206] Date: 10 November 2015, At: 14:42 Journal of Business Economics and Management 2006, Vol VII, No 3, 111117 ISSN 1611-1699 EVALUATION OF SOME BUSINESS MACRO ENVIRONMENT FORECASTING METHODS Vulfs Kozlinskis1, Kristine Guseva2 Riga International School of Economics and Business Administration (RISEBA), Meza iela 1, k. 2, LV-1048 Riga, Latvia E-mail: 1Vulfs@rsebaa.lv, 2 kris@rsebaa.lv Downloaded by [86.20.58.206] at 14:42 10 November 2015 Received 06 03 2006; accepted 28 04 2006 Abstract. Latest studies in the field of business macro environment (BME) assessment and forecasting have been undertaken and successfully implemented...
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...Lit review from the long term impact of health on economic growth in Pakistan 2. LITERATURE REVIEW As mentioned in introduction that numerous studies have been conducted on the relationship between human capital development and economic growth. The main conclusion of these studies is that there exists a positive relationship between human capital and economic growth. (1) It is only last decade that there is a flurry of studies exploring the relationship between health and economic growth. By using the adult survival rate as an indicator of health status, Bhargava, et al. (2001) finds positive relationship between adult survival rate and economic growth. Results remains similar when adult survival rate is replaced by life expectancy. However, fertility rate have a negative relationship with economic growth. Because life expectancy is highly influenced by the child mortality. Growth in workforce is mostly lower than population growth. Resultantly high fertility rate reduce the economic growth by putting extra burden on scare resources. Mayer (2001) also uses the probability of adult survival by gender and age group as a measure of health status. By using Granger-type, causality test study concludes that health status causes economic growth in Latin America generally, and specifically in Brazil and Mexico. Improvements in adult health are associated with 0.8-1.5 percent increase in annual income. Moreover, the growth impact is higher for improvements in health of female compared...
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...Question 1 ECO 372 Week 3 Group Discussion Question ECO 372 week 3 Individual Assignment Fiscal Policy Alternatives Simulation ECO 372 week 3 Team Assignment Economic Indicators Paper ECO 372 Week 4 Discussion Question 1 ECO 372 Week 4 Group Discussion Question ECO 372 week 4 Team Assignment Economic Indicator Forecast Paper ECO 372 week 5 Individual Assignment Applying International Trade Concepts Simulation ECO 372 week 5 Team Assignment Economic Project Paper ECO 372 Final Exam Guide ------------------------------------------------------------------------------------------ ECO 372 Final Exam Guide (UOP Course) For more course tutorials visit www.tutorialrank.com 1) The largest source of household income in the U.S. is obtained from 2) The market where business sell goods and services to households and the government is called the 3) Real gross domestic product is best defined as 4) Underemployment includes people A. who work "off-the-books" to avoid tax liabilities B. who are working part time, or not using all their skills at a full-time job 5) The Bureau of Economic Analysis is responsible for which of the following? 6) The Federal Reserve provides which of the following data? 7) Consider if the government instituted a 10 percent income tax surcharge. In terms of the AS/AD model, this change should have 8) If the depreciation of a country's currency increases its...
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...Submitted by: Group-7 Using differential data for constructing an index which is leading indicator of economy. Decoding the economic data to predict economic health. Leading Indicators of Economic Growth Indian Perspective 1. Introduction Leading Indicator approach is helpful in predicting the health of economy and take corrective fiscal or monetary policy in anticipation. 2. Economic Indicators Leading, Lagging and Coincident indicators confirm what is happening in our economy. Leading Indicator: Predict what the economy will do in the future. Example: hours worked per employee. If the hours are rising, firms should increase hiring. Lagging indicators: confirm what leading indicators predict. Lagging numbers change a few months after the economy does. Example: unemployment rate. It will fall after a few months of economic growth. If the leading indicator of hours worked is increasing, after a few months the lagging indicator of unemployment should fall. Coincident indicators: mirror what the data is saying. It is generally what is happening right now, for example, the jobs report. If a leading indicator is predicting future job gains, a lagging indicator is saying unemployment is falling, a coincident indicator will tell you the current employment number. 3. Business Cycles 3.1 Definition Fluctuations found in the aggregate economic activity. It is cyclical, consisting of expansions followed by recessions, contractions and revivals which merge into the expansion...
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...Lena Cavusoglu J. Mack Robinson College of Business, Georgia State University Master in International Business IB 8090 - International Business Environment Essay Exam # 1 Email: lcavusoglu1@student.gsu.edu 1. GDP per capita as an indicator: What are the limitations of this statistic in the context of emerging markets? GDP per capita is often used as an approximation of a country's prosperity. However, this approximation excludes significant factors such as the distribution of income, home production, underground economy, and social cost of production, in making a decision on the well-being of a country's inhabitants. First, emerging markets generally have an unbalanced distribution of income. There may be significant gaps in income between various groups of the society. In such markets, GDP per capita is a misleading indicator of the economic situation because a wealthy minority may hold a large share of GDP. GDP per capita might underestimate the fraction of society who has an income below the poverty threshold. Furthermore, the inequality in income distribution gives rise to a higher rate of increase in underground economy, which may make up a large fraction of GDP generated in a country. Consequently, many places have a higher GDP than what is reported. Second, there is a large domestic production in developing countries such as Turkey, which is not calculated in GDP since these products are not sold on the market. Homegrown vegetables and knit clothing are examples...
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...Executive Summary Economic indicators are statistics put out by government agencies and some private companies to provide measurements for evaluating the health of the economy, the latest business cycles and consumers spending behavior and patterns. Various economic indicators are released daily, weekly, monthly and/or quarterly which can result in an enormous amount of data to go through. Post-Secondary colleges and universities rather than wade through all data reports and economic indicators can select a few macroeconomic indicators to assist in meeting the challenges of the market to provide a quality and competitively priced education. Significant indicators used in this paper to aid in the decision making process for sustainability and growth for post-secondary education are inflation, the unemployment rate, interest rates and consumer confidence. This topic is of interest because for the past 35 years holding a four-year college degree has given workers a distinct advantage in the U.S. labor market. There is usually a large wage gap between college-educated working adults and those with high school degrees. With technological advances in the workplace and a growing reliance on computers, skilled workers are needed to apply for these technological positions. However, based on new trends the U.S. labor market now favors workers who hold a graduate degree (Valletta, 2015). It is because of these new trends we want to focus on the need for quality education and economic factors that...
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...Block IV MACROECONOMICS – II UNIT 17 Inflation 1-14 UNIT 18 Banking and Money Supply 15-31 UNIT 19 International Trade and Balance of Payments 32-50 UNIT 20 Economic Indicators 51-62 UNIT 21 Business Cycles 63-71 UNIT 22 Economic Growth, Development and Planning 72-84 Economics for Managers Expert Committee Dr. J. Mahender Reddy Vice Chancellor IFHE (Deemed to be University) Hyderabad Prof. Y. K. Bhushan Vice Chancellor IU, Meghalaya Prof. Loveraj Takru Director, IBS Dehradun IU, Dehradun Course Preparation Team Prof. Ramalingam Meenakshisundaram IFHE (Deemed to be University) Hyderabad Ms. Pushpanjali Mikkilineni IFHE (Deemed to be University) Hyderabad Mr. Pijus Kanti Bhuin IU, Sikkim Ms. Preetaq Dutta Rai IU, Jharkhand Ranchi Prof. S S George Director, ICMR IFHE (Deemed to be University) Hyderabad Dr. O. P. Gupta Vice Chancellor IU, Nagaland Prof. D. S. Rao Director, IBS, Hyderabad IFHE (Deemed to be University) Hyderabad Ms. Hadiya Faheem IFHE (Deemed to be University) Hyderabad Mr. Mrinmoy Bhattacharjee IU, Mizoram Aizawal Prof. Tarak Nath Shah IU, Dehradun Mr. Manoj Kumar De IU, Tripura Agartala © The ICFAI University Press, All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means – electronic, mechanical, photocopying or otherwise – without prior permission in writing from The ICFAI University Press, Hyderabad. Ref. No. Eco Mgrs SLM – 09...
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...Abstract This paper discusses Gross Domestic Product and related concepts as a measure of social progress and welfare. Although GDP remains the most widely used measure of social progress, the recent global financial crisis and continued depletion of natural resources and environmental adverse impact has brought into question the use of GDP as the main indicator of social welfare. Four alternatives to GDP are assessed and evaluated as the standard for national accounts for Botswana and China. Alternatives fall into the following broad categories, corrected GDP and extended national accounts,composite indexes and subjective approaches. Key Words: composite indicators; economic growth; GDP, sustainable indixes. Botswana, China Table of Contents Introduction A region's gross domestic product, or GDP, is one of the ways for measuring the size of its economy. The GDP of a country is defined as the total market value of all final goods and services produced within a country in a given period of time (usually a calendar year). It is also considered the sum of value added at every stage of production (the intermediate stages) of all final goods and services produced within a country in a given period of time. Until the 1992 the term GNP or gross national product was used in the United States. The two terms GDP and GNP are almost identical - and yet entirely different; GDP (or GDI - Gross Domestic Income) being concerned with the region in which income is generated...
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...Project Topic: (To research the following) A range of development indicators that South Africa is more developed than its neighbouring countries (Namibia, Botswana, Zimbabwe, Mozambique, Swaziland and Lesotho) | Mrs. K. Nagiah | | Done by: Caleb Terah Manikam Done by: Caleb Terah Manikam Caleb Terah Manikam11C Reg. no.:10 Geography Caleb Terah Manikam11C Reg. no.:10 Geography Content 1. Introduction 2. Comparison of development indicators in the seven countries 3. Pictures 4. Conclusion 5. Bibliography Introduction: In this investigation I will thoroughly research and determine whether South Africa is more developed than its neighbouring countries Namibia, Botswana, Zimbabwe, Mozambique, Swaziland and Lesotho with the given information and my own I will set out to determine to demonstrate that particular outcome with comparing them and demonstrating it through pictures. Development: refers to the level of progress/growth made by humans in all aspects of life e.g. economic, social, political, medical, educational, transport etc. Development is closely related to the attainment of human needs. There is a marked difference between developed and developing countries with respect to the level of development. The level of development of a country impacts directly on the quality of life of its inhabitants. The primary objective of economic development is to raise the standard of living of people. Levels of development:...
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...sergiubaltatescu.info Abstract: Ten of the post-communist countries managed to integrate into EU. Which are the subjective outcomes of socio-economic transformations in these countries? Did they manage to increase their citizens’ happiness in this process? To give an answer to these questions I used data from Candidate Countries Eurobarometer (2001-2004), Standard Eurobarometers (2005-2007), and World Bank Development Indicators. Developments in average national happiness have been compared with the economic (GDP, optimism concerning the level of living) and political (satisfaction with democracy) trends on the same time span. In all the studied societies, trends were positive after 2001. Eastern European countries showed higher increases in GNI per capita and also life satisfaction than in the rest of European Union. Those who started with lower levels increased more, strongly suggesting a possibility of convergence. A non-economic factor, satisfaction with democracy, mediates the influence of GNI on life satisfaction. Overall, access of Eastern European countries in European Union seems to be a success story, from both economic and non-economic points of view. However, the economic crisis may change the prognosis, raising the issue of sustainability of growth in happiness levels. Keywords: subjective well-being; economic development; Post-socialist countries; GDP JEL: D31, D60, I31, O52, P2 Ten of the post-communist countries entered EU in 2004...
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... | |Learning Outcomes |Tasks/Means |Criteria & Allocated Marks |Assessed | | | | |Marks | | | |STRUCTURE (10%) | |Successful students are able to: |Conduct a secondary research and write a report on | | | |Malaysia Economic Growth (increase or decrease in GDP). | | |Describe in detail the recent | | | |economic conditions...
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...For the past 10 years, there has been a decline in the level of economic growth in the U.S. This disappointment in economic growth in this country has been affected by various factor that have contributed to the change. Some of the factors that have contributed to the change in the U.S. level of economic growth include demographic changes, the level of productivity, and intensity (number of working hours per day). Demographic changes has been found to be a major contributing factor in this case. The percentage of working American citizens who are young enough not to retire and old enough not to be in school is not growing anymore (Leonhardt, 2016, p. 10). In 2011, only approximately 53% of the American population has been having ages of between...
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