Logout Open In App
Open In App
Warning: foreach() argument must be of type array|object, bool given in /var/www/html/web/app/themes/studypress-core-theme/template-parts/header/mobile-offcanvas.php on line 20

Chapter 8: Q. b For critical thinking (page 171)

Why might a range of dashboard economic indicators be difficult to include in one single measure such as GDP?

Short Answer

Expert verified

The greatest investors combine many economic indicators to obtain insight into patterns and verifications among multiple sets of data. Indicators provide road signs.

Step by step solution

01

Introduction

An economic indicator is a piece of macroeconomic data that analysts use to assess existing and future investment prospects. These measurements are frequently used to analyse the overall health of an economy.

02

Explanation

Economic indicators are divided into categories or groupings. The majority of these economic indicators are released on a monthly basis, allowing investors to plan for specific data at specific times of the month and year.

03

Conclusion

An economic indicator is a macroeconomic metric that academics use to forecast current and future economic activity and possibilities.

The most widely used economic indicators include data from the government, non-profit organizations, and universities.

Leading (that is, they anticipate trends), trailing (that is, they confirm trends), and coincident indicators are all possible (that is, they occur at the same time).

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Explain what happens to the official measure of GDP in each of the following situations.

a. Air quality improves significantly throughout the United States, but there are no effects on aggregate production or on market prices of final goods and services.

b. The U.S. government spends considerably less on antipollution efforts this year than it did in recent years.

c. The quality of cancer treatments increases, so patients undergo fewer treatments, which hospitals continue to provide at the same price per treatment as before.

What is the percentage increase in China's per capita GDP when one switches from foreign exchange rates to purchasing power parity?

Why might a range of dashboard economic indicators be difficult to include in one single measure such as GDP?

Why might current intangible investments in recorded music by Katie Perry or Rihanna be harder to measure with greater precision today than long-past investments in the recorded music of, say, Elvis Presley in the 1960 s or Elton John in the 1970s? (Hint: Is it easier to project forward or to look back at past data?)

Consider the following hypothetical data for the U.S. economy in 2020(all amounts are in trillions of dollars).

a. Based on the data, what is GDP? NDP? NI?

b. Suppose that in 2021, exports fall to \(2.3trillion, imports rise to \)2.85trillion, and gross private domestic investment falls to $3.25trillion. What will GDP be in 2021, assuming that other values do not change between 2020and 2021?
See all solutions

Recommended explanations on Economics Textbooks

Taxation Economics

Read Explanation
View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free