ECONOMICS

Economics

Table of Contents

Economics4

Microeconomics4

Macroeconomics4

Economic indicator5

Gross Domestic Product5

Two ways to measure GDP7

Most Recent Six Months Data7

Signal to recent state of economy7

Prospect forecast or trends8

GDP's influence on the stock market & signal to the prospect of the economy8

Inflation9

Calculates of Inflation11

Signal to recent state of economy11

Prospect forecast12

Inflation effect on Stock Market12

Productivity13

Most Recent 6-months data and Signal of the recent state of economy14

Prospect forecast or trends15

Productivity effect on stock market15

GDP's influence on three business sectors16

Health Care Domain16

Automobile Domain17

Education Domain17

Inflation's influence on three business sectors18

Health Care Domain18

Automobile Domain19

Education Domain19

Productivity's influence on three business sectors20

Health Care Domain20

Automobile Domain21

Education Domain21

Conclusion22

References25

Economics

Economics

It is the study of how the forces of supply and demand allocate scarce resources. It is subdivided into microeconomics, which notes the actions of companies, consumers and the function of government; and macroeconomics, which observes inflation, joblessness, industrial production, and the responsibility of government (Collins, 2002).

Microeconomics

It is the study of the behavior of small economic units or specific subgroup such as that of individual consumers or households.

Macroeconomics

It is the study of the behavior of an economy at the aggregate level, as opposed to the level of a specific subgroups or individuals (which is called microeconomics). For instance, a macroeconomist might believe the industrial segment, the services sector or the farm sector, but he/she will not consider specific parts of any of these sectors (Anderson, and 2000). Researches Characteristics include inflation, joblessness, and industrial production, frequently with aspiration of studying the outcome of government policy on these attributes.

Economic indicator

It indicates the statistical data that reveals general trends in the economy. Those with predictive value are leading indicators; those occurring at the same time as the associated economic activity are coincident indicators; and those that only become apparent after the activity are lagging indicators (Alexandrova, Hargreaves-Heap, 2008). Examples are unemployment, housing starts, Consumer Cost Index, industrial production, bankruptcies, GDP, stock market costs, money supply changes, and housing starts.

Gross Domestic Product

Gross Domestic Product is the total market value of all the final goods and services produced within a nation's borders in a given time period. Every goods and services fashioned and brought in the marketplace has a cost. The cost of the total output is called as GDP (Hansen, 2007). It can be measured by either cumulating all the salary earned in the economy or all the investing in the economy and both calculates should roughly equate to the same total.

The Gross domestic salary includes the following items:

1) Wages and salaries paid to the labor force.

2) Corporate profits earned by the country's businesses.

3) Interest charged by lenders (i.e., banks).

4) Taxes collected by governments.

The Gross domestic expenditure includes the following items:

1) Consumer investing on items such as food, clothing, services, and other items.

2) Investments in plant, equipment, inventories & household residences.

3) Government investing for defense, roads, schools, and other items.

4) The value of exports minus imports.

GDP is the basic measure of an economy's size.

Rank

Country

GDP

1

United States

$10,082,000,000,000

2

China

$ 6,000,000,000,000

3

Japan

$ 3,550,000,000,000

4

India

$ 2,660,000,000,000

5

Germany

$ 2,184,000,000,000

6

France

$ 1,540,000,000,000

7

UK

$ 1,520,000,000,000

8

Italy

$ 1,438,000,000,000

9

Brazil

$ 1,340,000,000,000

10

Russia

$ 1,270,000,000,000

Two ways to measure GDP

1. Nominal GDP is the value of concluding output ...