Economics is often called the "science of decision making." The decisions that economists analyze range from personal decisions such as how big a pizza to order or whether to buy or lease a new car to the decisions the federal government makes about things like the size of our military. Economists use information about these, and other decisions, to develop indicators that can be used to determine the health of our economy. Just as a physician relies on indicators such as temperature, blood pressure and heart rate to determine the health of a patient, economists use indicators like gross domestic product growth, the unemployment rate and the rate of inflation to predict our nation's economic health. How do economists make their forecasts about the United States economy? In this lesson you will use the Web to retrieve up-to-date key economic statistics which will provide valuable hints about the state of the future economy. When the lesson is complete, you will have a new or better understanding of how economists predict our economic future. Pretend you are a partner in an economic forecasting firm called Acme Economic Forecasters (AEF). You and your partners have just received a letter from a business woman in Australia who is interested in moving her guava jelly business to the United States. She has asked you to prepare a report on the expected economic health of the United States economy for the next year. You and your AEF partners will need to do the following:
1. Make certain you can explain the three leading economic indicators: GDP, inflation rate, unemployment rate. 2. Gather data on the current state of the three leading economic indicators for the United States economy.
In order to complete your client's report, you will need to complete the following tasks: A Pedestrian's Guide to the Economy (www.amosweb.com/pdg) click “Random Walk Through Some Economic Statistics”...