Evaluating The Health Of An Economy Essay
According to the last section of the module real GDP is the best way to monitor the economy, because it takes so much and has so many factors to calculate. It is the best thing to look at when evaluating the health of an economy. It considers hundreds of data sources such as tax returns, censuses, and surveys to get its data. It takes a whole month after a quarter has ended for the GDP to be calculated. Since it takes so long to come out, there are other ways to predict the economy of a country. As stated before, there are indicators that directly correlate with the outcome of GDP and some of them are positive correlated to GDP. These numbers come out in a more timely fashion and are things that investors look at since time is money. Information is money as well and when you can have information come out in a timely manner, it 's something that every investor will look at and not wait for the GDP to be a whole month late. So making educated guess based off of these indicators that come out way before GDP is known is something that every investor should do.
The first thing that investors should do is look up the WECO ( World Economic Calendar) and look for the country you are interested in investing in, this module is focused on the United States. Then you set the range of dates before the GDP is released so that you can look at the indicators that help predict the GDP with relatively good accuracy.
The first indicator that comes up is the PMI business…