Tracking the Macroeconomy:
Economic Statistics and Economic Activity:The National Income and Product Accounts [NIPA] stated by U.S. Commerce Department's Bureau of Economic Analysis, are basic data of macroeconomics. Whenever you do a job for someone and get paid, which is economic activity. Whenever you purchase something at store, which is economic activity. Whenever government taxes you and spends its wealth to construct a bridge that is economic activity. In broad, if a flow of wealth is involved in a transaction, economists will consider that transaction as "economic" activity. On the whole, "economic activity" is the model of transactions in which things of actual useful value -- resources, goods, labor, and services--are created, transformed, and exchanged. If a business doesn’t involve something of useful value being exchanged for currency, odds are that NIPA won’t count it as part of "economic activity."In the US, individual economic information is released month-by-month and quarter-by-quarter, a "quarter" being a three-month time: a quarter of year. so you will often hear economists and other analysts talk on the subject of the "change in inventories in the second quarter." The absolute number of statistics is puzzling at first glance.
We will concentrate on six key indicators of economic activity.
Six Key Indicators:• The unemployment rate • Real Gross Domestic Product• The inflation rate • The level of the stock market • The exchange rate• The interest rate The first two are straightforwardly and immediately linked to people's material well-being. The other four are pointers and maintains which profoundly control the economy's direction.
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