Essays on Economic Indicator

Introduction

The decision on whether to invest money or deposit it in a savings account is influenced by many factors. However, the most significant factor would be the economic gain from depositing money in a savings account compared to investing. Various indicators can be used to determine the economic gain to be made in terms of purchasing power. One vivid indicator is the real interest rate. Real interest rate as an economic indicator describes the rate at which an individual’s purchasing power grows from investing activities. The real interest rate is derived from adjusting the nominal interest rates in ...

The leading, lagging and coincident economic indicators are types of the timing attribute of economic indicators. This is because they indicate the timing of their relative changes with the changes on the entire economy. Economic indicators can be defined as the statistics indicating how well the economy of a given nation is performing and future projections on the performance of this economy (Hirschey, p. 212). These statistics include GDP, unemployment rates, and inflation rates among others. Leading, lagging and coincident economic indicators are as defined below:

Leading – These economic indicators change prior to economy changes thereby signaling future changes ...

Question 1

The American economy is just making a comeback from the 2008 economic recession. The recession took the economy to its lowest point in 25 years. The recession arose from the housing bubble, which led to the eventual disintegration of the financial markets. The housing market caused the disintegration of the markets due to irresponsible activities by investors and financial institutions. The housing market is quite different from the stocks market hence; the circumstances that led to the recession involved a series of unique events. The housing industry involves risks that is quite complex to understand because people view houses as assets ...

Part A

Introduction Fortune 500 companies are the top 500 companies in the US which are listed by Fortune magazine every year. The companies are generally ranked on the basis of their gross revenue (Fortune 500). The Fortune magazine started to enlist these 500 best company in 1955 for the first time. The concept of selecting best 500 American companies was first created by Edgar Smith, the editor of Fortune 500. In these 500 best companies, the top companies are Wal-Mart Stores, Exxon Mobil, Chevron, Berkshire Hathaway, and Apple (Fortune 500) The company chosen for this research paper is ...

Gross Domestic Product:

Gross Domestic Product, usually abbreviated as ‘GDP’ is the total amount of goods and services produced in an economy during a given period of time. GDP is also one of the popular economic data source, used for the purpose of future forecasting of economic trends in a nation. Apart from future forecasting, GDP is also used to compare growth between two or more nations. For Instance, if during 2013, GDP of Canada is 5.6% and of United States is 6%, this indicates that the US economy has higher growth.

Real Gross Domestic Product:

Real GDP is a macro-economic measurement indicator, which accounts for total value of ...

Question 1

The federal reserve bank is a major institution in the American’s economy and society designed to offer financial stability by maintaining currency flexibility. The Fed as consistently played a significant role in the Untied States economy and monetary policy since its establishment. The Fed established in 1913, therefore, its the roles and regulations go back only to the early years of the 20th century. For instance, the Fed came into play when a harsh economic crisis started in 2008. During this period the GDP shrank, unemployment increased and millions of Americans were worried about their futures. It was the role of ...

Unlike most countries, that use the central Bank system the U.S has a federal Banking system which is also known as the fed. The headquarters of the federal Bank is in the capital Washington D.C and also has other twelve district banks in different locations. Decisions made by the Federal Reserve Bank are critical because they ensure that the country has a safe and sound financial system. Federal Reserve Act established the fed in 1913 and was formed to solve problems of money in the country. Therefore, the Federal Reserve Bank is mandated to formulate the best fiscal and monetary policies ...

Gross Domestic Product (GDP).

GDP is a representation of the total value of all goods and services produced in an economy during a given year. It is a gauge used in assessing the health of an economy in comparison to previous quarterly reports (Frumkin, 2006). Measuring GDP involves two methods, which logically should arrive at the same totals. The methods used in measuring GDP are; income and expenditure approach. The income approach sums up gross profits for all incorporated and incorporated companies, total employee compensations, taxes and less any government subsidies. The expenditure method, on the other hand, sums up total investments to total consumption, net ...

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Economic Indicators and Wal-Mart Strategy Introduction

Any business entity operates within a specific economic environment that significantly impacts its success and strategies. Thus, it is imperative for any organisation to conduct an in-depth analysis of its economic situation for successful strategy formulation. Economic indicators present a broad overview of an economy’s well-being. They are statistics about specific aspects of an economy, like unemployment rate, gross domestic product, consumer spending and inflation rate. These indicators not only reflect the health of an economy, but also serve as specific inputs to organizations to devise their investing strategy. This process of strategy ...

Gross Domestic Product

GDP is an indispensable macroeconomic indicator for policy makers and economic analysts in the estimation of economic performance and the general standards of living. GDP statistics are by far, the most closely followed and critical economic indicators of any economy. In many instances, GDP statistics are published on National Accounts using volumes of extensive statistical data sets prepared on monthly, quarterly, or yearly basis. According to the Bureau of Economic Analysis (2012), the most used economic indicator of aggregate economic production of a country is the Gross Domestic Product (GDP). This economic measure represents the money value of all services ...