Economic Indicators and Measurements


Economic Indicators and Measurements



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Economic Indicators and Measurements

  • Business Cycle
  • SSEMA1f
  • Define the stages of the business cycle, include peak, contraction, trough, recovery, expansion as well as recession and depression.

5 Key Economic Indicators

  • Gross Domestic Product (GDP)
  • The Business Cycle
  • The Unemployment Rate
  • Inflation
  • Consumer Price Index (CPI)

What Is the Business Cycle?

  • KEY CONCEPTS
    • Changes in the economy often follow a broad pattern:
    • Business cycle—series of periods of expanding and contracting activity
      • Has four phases:
        • 1. Expansion
        • 2. Peak
        • 3. Contraction
        • 4. Trough ( length can vary)

What Is the Business Cycle?

  • Stage 1: Expansion/Recovery
    • Expansion is a period of Economic Growth—increase in real GDP
      • real GDP grows from a low point, or trough
    • During an expansion
      • Jobs easier to find; unemployment drops
      • More resources needed to keep up with spending demand
      • as resources become scarce, their prices rise

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