Question

Carla just started her new job working at the Department of Commerce. In order to see...

Carla just started her new job working at the Department of Commerce. In order to see whether Carla “knows her stuff,” her boss asks her to put together a presentation on the current state of the economy. What is one of the economic indicators Carla could look at?

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Answer #1

One of the basic indicator is the the real GDP growth rate. It will shows how the economy is growing over time. What is the fundamental indicator of the economic growth and per capita income. Real GDP growth is neutralized by price change and purely indicate the the actual growth of economy. It will show in the current status of the economy and compare with other similar economy. It will shows the expansion or recession phase of the economy as there is business cycle effect over the period. Further real GDP can be break down into different component. One key component is investment demand that is demand for capital good which is the engine of the growth and manufacturing. On a comparative analysis various economy grow at different rate therefore showing the growth rate over recent 10 years will be quite helpful to understand the current scenario of the economy.

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