Retail Sales and CPI
What would retail sales represent in the GDP formula
consumption
What indicator do we use that watches the stock market?
S&P 500
What is real GDP?
GDP adjusted for inflation
What is a tariff and who pays for it?
Tax on import goods, importers pay for it and pass increase along to customers
Describe inflation
the rate of increase in prices over a given period of time
What is the labor force
Those age 16 and over who are willing and able to work, and actively seeking work (demonstrated job search activity within the last four weeks)
Describe GDP per capita and how it can misrepresent the economy
It is GDP divided by population and it can misrepresent how much the average american can afford by the average
What is the balance of trade
is the difference between the monetary value of a nation's exports and imports over a certain time period.
What is a basket of goods?
collection of items used to measure changes in the cost of living and inflation
What does the S&P 500 Track
Best 500 stocks/business in the united states
How is pessimism and optimism shown in the economy in consumer confidence index?
Under or above 100
What are housing starts
reflects the number of privately owned new houses on which construction has been started
How can increased online retail sales effect the economy?
Negative example
Traditional brick-and-mortar stores may struggle, leading to store closures and layoffs in physical retail jobs.
positive example
Job Creation – Growth in e-commerce leads to more jobs in areas like warehousing, logistics, delivery services, and digital marketing
Describe U6 vs U3 Unemployment rates
U3-Measures the number of unemployed individuals who are actively seeking work and available to take a job, as a percentage of the civilian labor force
U6-Includes all those counted in the U-3 rate, plus those who are marginally attached to the labor force (discouraged workers who have stopped looking for work but are available to work) and those working part-time for economic reasons
What is the formula for GDP
C+I+G+(X-IM)
name 4 things the housing industry has an effect on
Banking mortgage sector raw materials employment construction manufacturing real estate
What is the formula for calculating CPI
Basket of goods (given yr)/ Basket of goods (Base yr) X 100 = CPI
Why is the stock market not the only economic indicator we look at?
It is a factor it how the economy is doing but it doesn't represent things like job growth, unemployment, or how much people are making/spending
What questions do they ask during Consumer confidence surveys
CURRENT business conditions
Business conditions for the NEXT six months
CURRENT employment conditions
Employment conditions for the NEXT six months
Total family income for the NEXT six months
Why is housing starts a good measure of the economy
Tells us about home prices/peoples ability to buy homes. In a good economy more people are able to afford to buy in a recession less people are able to buy