The two statistics one should track to understand the future direction of the economy are interest rates and inflation. interest rates and the gross domestic product. the consumer confidence index and the index of leading economic indicators. inflation and the index of leading economic indicators.
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Step 1: The consumer confidence index and the index of leading economic indicators are the two statistics that are used to understand the future direction of the economy. Show more…
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1. Economic indicators Use the following table to determine whether each scenario describes an economic growth indicator or an inflation indicator, and then whether the Fed would use restrictive or stimulative monetary policy in response to the scenario to fulfill its dual mandate of sustainable growth and low inflation. Scenario Indicator Type Monetary Policy Type Over 6 months, the Consumer Price Index decreases by 4% Economic Growth Restrictive Over 3 months, the Producer Price Index decreases by 4% Inflation Stimulative Over 5 months, national income decreases by 5% Over 4 months, Gross Domestic Product decreases by 3%
Breanna O.
The accompanying table contains two price indexes for the years $2011,2012,$ and 2013 : the GDP deflator and the CPI. For each price index, calculate the inflation rate from 2011 to 2012 and from 2012 to 2013 $$\begin{array}{|l|c|c|} \hline \text { Year } & \text { GDP deflator } & \text { CPI } \\ 2011 & 103.199 & 224.939 \\ 2012 & 105.002 & 229.594 \\ 2013 & 106.588 & 232.957 \end{array}$$
Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most balanced picture of how prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price index (CPI) and the GDP deflator. The GDP price index for this year is calculated by dividing the ______________using___________ by the ________ using _____________and multiplying by 100.
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