Summary
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 …show more content…
Growth in this index may also lead to business investment growth, however, decay may cause the opposite to occur. This data comes from Standard & Poor’s is responsible for assembling the index, however, present information is available daily from financial news organizations, financial news publications, and also from Standard & Poor 's.
2.0 Monitoring the Economy
If we want to see a lot of continuity in monetary policy, we should explore ways to influence the direction through the Federal Open Market Committee. Among this, we should be monitoring six points: labor, inflation, GDP, Income, Housing, and Policy Rules.
2.1 Labor
The unemployment rate is the best gauge of present labor conditions because the rate that the payroll grows greatly links with a diverse set of economic indicators. The time length of unemployment is very important because your skills wear away the longer you are not employed.
FIGURE 1: Household Survey
FIGURE 2: Unemployment …show more content…
FIGURE 17: Rule 2- The Beveridge Curve
This summarizes the relationship between unemployment and job openings. The downward curved slope reflects that higher levels of unemployment correlate with lower levels of job openings.
FIGURE 18: Rule 3- Okun’s Rule
This describes the relationship between changes in real GDP and changes in the unemployment rate. The unemployment rate dropped more than the mode of GDP growth.
3.0 Recommendation Conclusion
Being that consumer spending accounts for 70% of total economic activity, the economy’s consumers need to know what to expect in order to know how to handle their present and potential financial decisions. It is important that we are constantly monitoring these aspects while taking into account how each point effects the economy. The points and figures that I have listed within this report list important factors when monitoring the economy to insure the best possible flow.
There is a high rate of success when the economy is monitored with big data, such as the multiple points I’ve
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 …show more content…
Growth in this index may also lead to business investment growth, however, decay may cause the opposite to occur. This data comes from Standard & Poor’s is responsible for assembling the index, however, present information is available daily from financial news organizations, financial news publications, and also from Standard & Poor 's.
2.0 Monitoring the Economy
If we want to see a lot of continuity in monetary policy, we should explore ways to influence the direction through the Federal Open Market Committee. Among this, we should be monitoring six points: labor, inflation, GDP, Income, Housing, and Policy Rules.
2.1 Labor
The unemployment rate is the best gauge of present labor conditions because the rate that the payroll grows greatly links with a diverse set of economic indicators. The time length of unemployment is very important because your skills wear away the longer you are not employed.
FIGURE 1: Household Survey
FIGURE 2: Unemployment …show more content…
FIGURE 17: Rule 2- The Beveridge Curve
This summarizes the relationship between unemployment and job openings. The downward curved slope reflects that higher levels of unemployment correlate with lower levels of job openings.
FIGURE 18: Rule 3- Okun’s Rule
This describes the relationship between changes in real GDP and changes in the unemployment rate. The unemployment rate dropped more than the mode of GDP growth.
3.0 Recommendation Conclusion
Being that consumer spending accounts for 70% of total economic activity, the economy’s consumers need to know what to expect in order to know how to handle their present and potential financial decisions. It is important that we are constantly monitoring these aspects while taking into account how each point effects the economy. The points and figures that I have listed within this report list important factors when monitoring the economy to insure the best possible flow.
There is a high rate of success when the economy is monitored with big data, such as the multiple points I’ve