Essay about Factors Affecting The Economy Of A Nation 's Economy
The business world is trying to get a firm grip on the happenings within the economy and the proper and most efficient way to do so is to monitor the economy and economic indicators. It is crucial that the status of a nation’s economy is constantly monitored. Multiple factors come into play when determining the status of a nation’s economy. Some of these key factors include business cycles, unemployment, and inflation. Because the business cycle is an aspect of the economy that is constantly changing and cycling, we must constantly monitor and follow the levels of the economy. Unemployment and inflation are two aspects of the economy that are better when the numbers are low. The points and figures that I have listed within this report list important factors to consider when monitoring the economy to insure the best possible flow.
1.0 Economic Indicators to Watch
Economic indicators are statistics and information supplied by government agencies, non-profit organizations, and private companies to evaluate the health of our economy, the latest business cycles, and how consumers are spending and behaving. Economic indicator data is provided on daily, weekly, monthly and/or quarterly basis’s.
1.1 Real GDP (Gross Domestic Product)
This is important because the Federal Reserve uses the real GDP as a piece of data to adjust monetary policy. This data comes from the U.S. Department of Commerce 's Bureau of Economic Analysis on a quarterly basis. Data is indicated as…