The Definition of Economic Indicators

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Economics Made Simple

The term " economy " can stop some people cold , as they consider the economy as a complex issue that definition of economics requires a PhD to understand. Nothing could be further from the trust if is greatly simplified . By taking a little time to acquire a basic understanding of even the most complex issue , which will soon be on your way maseting it. We trust you will learn what you need to understand . definition of economics

The performance of an economy

Economic performance is followed by economic statistics are published monthly by the U.S. government . Pay attention to some key statistics can improve your understanding of economics .

Unemployment Report

definition of economics One of the best known economic statistics unemployment report is released on the first Friday of each month by the U.S. Department of Labor . Obviously, if the number of people working increases , it is a good situation. The unemployment report is probably the most important definition of economics relationship that emerges from each month , as the number of people working has a major impact on the economic health of a country. definition of economics

Consumer Activity

Another important determinant of a country's economic health is consumer activity . This is usually prepared in retail sales figures are published monthly by the U.S. Department of Commerce . Retail sales figures show levels of consumer definition of economics spending in the United States , which actually overshadow the business spending .

Consumers create about two thirds of gross domestic activity , thanks to the proliferation of credit cards, a decade of relatively low unemployment and historically low interest rates have helped mortgage consumers to borrow money on the equity at home and spend the money on the purchases of goods and services. definition of economics

inflation

Inflation statistics are also monitored closely. If inflation is heated and rises above four percent , for example, which may be problematic for the economy. Prices rise too quickly erode the definition of economics purchasing power of consumers , reducing spending on goods and services.

If inflation increases , businesses will suffer, because the Federal Reserve will raise interest rates. This, in turn , raise the interest rates that definition of economics companies must repay borrowed funds , which will reduce their profits and eventually lead to layoffs.