| A | B |
|---|
| leading indicators | measure business acitivities which rise or fall just before a major change in economic acitivity |
| formation of new business | The change in economic acitivity which will increase as the economy expands |
| coincident indicators | measure business acitivies that change at about the same time that shifts occur in general economic activity |
| personal income | a coincident indicator |
| lagging indicators | business activities that tend to change after a major change in general economic activity has occured |
| interest rates charged by banks | an example of a lagging indicator |
| Inflation | a general rise in the price level |
| GDP stands for | Gross Domestic Product |
| The definition of GDP | The measure of the final goods and services produced domestically in one year |
| C + I + G + X | Consumption, Investment, Government Spending, Net Exports |
| up 2.7% | % change in GDP for the third quarter of 2000 |
| up 5.6% | percentage change in US GDP for second quarter of 2000 |
| CPI stands for? | Consumer Price Index |
| Define CPI | A measure of the average change over time in prices paid by urban consumers for a similar market basket of goods and services |
| some parts of the CPI market basket | foods such as breakfast cereal and milk, housing, apparel, funeral costs |
| what is the BLS? | Bureau of Labor Statistics - collects all kind of data for the government to determine how well the economy is doing |
| What is the unemployment rate in the US for December 2000? | 4% |
| Who is not counted in the unemployment rate? | discouraged workers, retired people, full time students |
| What are two ways to determine the GDP | add up all income or add up the value of all final goods and services produces |
| Composite of Leading Indicators value for October 2000 | declined .2% to 105.5 |
