In at least 2 paragraphs. With 7 sentences ecah paragraph. Please indicate which market model(s) seem to be
In at least 2 paragraphs. With 7 sentences ecah paragraph. Please indicate which market model(s) seem to be most impacted by the status of the current economy based on your use of at least 2 Economic Indicators …FOR EXAMPLE….GOOGLE OR SEARCH THE CNNMONEY WEBSITE FOR either: CURRENT GDP (GROSS DOMESTIC PRODUCT) CURRENT CPI (CONSUMER PRICE INDEX) UNEMPLOYMENT RETAIL SALES JOBS
An economic indicator is a statistic that provides valuable information about the economy and the major goals of an economy is to achieve growth,high employment and price stability. Gross Domestic Product (gdp) which is the market value of all goods and services produced domestically in a given year is used to provide a highlight on the growth aspect, where as the employment level in the economy is indicated by the unemployment rate, i.e., the percentage of labor force that’s unemployed and alooking for work and finally the third goal is achieving price stability, the path to which is guided by the consumer price index (CPI). Any any market model these three indicators play a vital role in putting forward the picture as to where are we headed.
The role economic growth is to provides goods and services to people and this measure as to which extent the goods and services are present in the economy to meet the needs is measured by measuring the total output of the economy known as GDP and it is not the absolute level of GDP but the chnage in gdp after it has been adjusted for inflation that highlights the process of ecnomic growth or economic contraction. if the gdp goes up then the economy is growing and if not then it is on a downward trend. Aother important indicator is that of employment as for whatever is produced in the economy to be consumed there needs to a demand for these goods and services that requires money in the hand of people and for people to earn they must be employed hence employment indicators highlights the level of unemployment in the economy and guides the government in making pro employment policies to stipulate demand in the economy because if the supply of goods in the economy remains greater than demand for a long time then there will be recession. the third and by far one of the most important indicator is that of CPI which is used to measure inflation in the economy. inflation effects the level of real interest rate which is the cost of financing an investment, which is a major part of generating output and therefor in any market model inflation plays a vital role. inflation also impacts the other real variables in the economy like real wage, wealth etc, measure of inflation is also required to calculate dearnerss allownace which is an allowance provided to downplay the impact of level of infaltion on the consumption level of the consumer.