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Discuss the Three Major Economic Indicators and How They Are Indicative of Our Current Economic Climate.

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Three major economic indication are (1) the gross domestic product (GDP), (2) the unemployment rate, and (3) the price indexes. Gross domestic product (GDP) is the total value of final goods and services produced in a country in a given year. (pg 46) Domestic companies, or foreign company, can produce goods and services as long as them company is located within the country’s boundaries. There are negative effects on businesses if the gross domestic product growth slows down or declines. How productive the work force is a huge influence on the growth of gross domestic production. The discussion on that is had about the nations economies based on gross domestic production. The unemployment rate is anyone over the age of 16 who is unemployed and tried to find a job within 4 weeks. The United States unemployment rate is 2000 had reached its lowest point 3.9%. However, that rate went up rapidly to over 6% due to the economic slowdown in 2002-2003. It fell back down to less than 5% in 2006. As a country, The United States tries to protect those who're unemployed. However, a lot of the unemployed people do not get unemployment benefits. The price indexes help to measure the health of the economy (pg 47). It does this by measuring the levels of inflation, disinflation, deflation, and stagflation (pg47). The rise in the prices of good and services over time is called inflation. If the economy experience a rapid inflation is not good. Goods and services can go up in 10 years if inflation goes up at least 7%. When the prices increases are slowing the inflation rate is declining is called disinflation (pg 47). When the prices are declining, its called deflation. When the country has too many goods that the people can not afford, the country is going through a deflation. When the economy is slowing down, however the prices are going up is called stagflation. Each one of

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