Economic Indicators

SWBAT Define real gross domestic product, inflation, and unemployment rate Locate current data for real gross domestic product, inflation, and the unemployment rate Examine 12-month trend data for gross domestic product, inflation, and the unemployment rate. Use economic data to produce a report that describes the current state of the economic activity and provides an economic forecast to a fictional client.

So what does all that mean for you? People use this information about when to buy houses, what is happening with your job etc.

What are your vital signs if you go to the hospital? Just like you going to the hospital, we have vital signs for our economy. They are GDP, CPI (inflation), and unemployment. We use these to measure the “health” of the U.S economy.

ECONOMIC INDICATORS: THE VITAL SIGNS OF THE U.S. Economy A statistic that describes the current performance of the U.S. economy.

Three Main Economic Indicators: 1. Real Gross Domestic Product (GDP) This indicator measures the output of the final goods and services produced in the U.S. economy in a given time period (typically, one year).

2. The Inflation Rate This indicator measures how rapidly the overall price level is changing in the U.S. economy. We use the CPI to measure this

3. The Unemployment Rate This indicator measures the percentage of the U.S. labor force that wishes to work, but are currently without jobs.

Activity You will be assigned to a group, your EFI group or the Economic Forecasters Inc. Groups of 6. When in your groups of 6, decide which members will become “experts” in each of the 3 fields (GDP, CPI, Unemployment). 2 people per group will become experts in these areas. These “expert” groups will fill out their “study guides” and when finished, they will return to the EFI group to help others fill out their study guides with the relevant information.

Activity Once finished, your EFI group will prepare an Economic Forecast Report.

To Whom It May Concern: I am the CEO of a successful business. My firm manufactures and distributes many consumer products. I would like to have the company open another factory, but our Board of Directors is concerned that the U. S. economy is too weak to support its expansion. Recent economic reports—especially in the popular media—paint a mixed picture. Therefore, I would like to hire your firm to produce a report that describes the current state of the U.S. economy and forecasts the performance of the economy over the next 12 months. I would appreciate a complete report, so please include several charts or graphs that will help me see the trends in the economy. I will then share these results with the Board of Directors. I look forward to receiving your report. Sincerely, Jocelyn Q. Public Chief Executive Officer Acme Industries, Inc.