Gross Domestic Product, Inflation, Unemployment and the Consumer Price Index Market Indicators.

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Gross Domestic Product, Inflation, Unemployment and the Consumer Price Index Market Indicators

Inflation is a general trend for an increase in overall prices Inflation is a general trend for an increase in overall prices Inflation is measured by the Consumer Price Index (CPI) Inflation is measured by the Consumer Price Index (CPI) The prices of 90,000 products are measured in 85 locations around the nation every month The prices of 90,000 products are measured in 85 locations around the nation every month Inflation is public enemy # 1

Inflation Rates Degrees of Inflation Degrees of Inflation Mild inflation-1-5% Mild inflation-1-5% Strato-inflation: about 10 % to several hundred % Strato-inflation: about 10 % to several hundred % Hyperinflation: breakdown of the monetary system Hyperinflation: breakdown of the monetary system

Unemployment Rate % of people in the civilian labor force not working but looking for work % of people in the civilian labor force not working but looking for work Civilian labor force= at least16 yrs old, working or looking for work. Civilian labor force= at least16 yrs old, working or looking for work.

Employability and Income Unskilled labor-digging ditches Unskilled labor-digging ditches Semi-skilled labor-fry cook Semi-skilled labor-fry cook Skilled labor-electrician, plumber Skilled labor-electrician, plumber Professional labor-doctor, lawyer Professional labor-doctor, lawyer Blue Collar Your employability and income depends greatly on your education, skills, certifications and experience. Income inequality refers to the extent to which income is distributed in an uneven manner among a population. We can divide these abilities into 4 categories and two ranges White Collar

GDP GDP “Gross Domestic Product” is a measurement of the economy which includes all consumption (C), investment (I), government spending (G) and net exports (X – M), produced within the national borders of a country.

To compare one year’s GDP to a later year, you must remove the inflation from the later years. 2013=$16,768,100,000, =$17,419,000,000,000 - (1.6%inflation) 2014=$17, ,000,000(Real GDP) +2% Real GDP

Placing each year’s real GDP upon a line graph will show the Business Cycles of the economy. Placing each year’s real GDP upon a line graph will show the Business Cycles of the economy.

Until 1991 the main measurement for the economy was Gross National Product (GNP). Until 1991 the main measurement for the economy was Gross National Product (GNP). It calculates the production of all a nation’s citizens and companies around the world per year. It calculates the production of all a nation’s citizens and companies around the world per year.