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Macroeconomic Indicators

An economic indicator is a statistic that indicates the current status of the economy, and how the economy will likely perform in the future. Investors and other private or government organizations use this information as a tool to make business decisions. By gathering historical data about the economy and comparing it to current trends, you can compile a snapshot of economic fluctuations. The direction of an indicator may vary according to changes in the economy. The indicator can be leading, lagging, or coincident. Leading indicators are changes before the economy has recognized the change. Lagging indicators do not change until a few quarters after the economy has change. Coincident indicators move at the same time as the economy. GDP is a known coincident indicator (Economic About, 2006). Some of the common indicators are Real GDP, Retail Sales, Unemployment Rate, Inflation Rate, Housing Starts, and Savings rate. As the explanation of these six indicators will be use to......


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Approximate Word Count: 2254
Approximate Pages: 10 (250 words per double-spaced page)

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