Student's Name: Score = /25
Instructions. This final test incorporates and integrates all the material we studied in Marco-Economics. Please review each question carefully. Please provide your answer in a narrative, integrating economic tools and concepts into your professional life, use examples, professional work-life insights to support your answers. The questions are designed to be completely answered in 1-1.5 pages of written narrative. Good luck!
Q1 (9 Points). Please describe 3 economic indicators, and explain the business value of economic indicators.
Economic indicators are statistics that show how well an economy is doing at the time and how well it will do in the future. One economic indicator is the unemployment rate and what the unemployment rate does is shows the percentage of people in the workforce who are not working the week of the survey. The unemployed rate is calculated by taking the number of unemployed workers divided by the total civilian workforce. During an economic growth cycle the unemployment rate generally goes down and then during an economic decline the unemployment rate will generally rise. Although unemployment does not give the best image in a persons head usually it does carry some benefits with it. One of the benefits that come with unemployment is that it keeps inflation from rising too high; unemployment also gives employers a better choice of employees to choose from and gives a better choice for picking the most talented person for the job. There are obviously negative aspects to the business world about unemployment rate such as if there is a high unemployment rate there is a low real GDP. There is also the cost to the public for the unemployed such as welfare programs and food stamps and other government programs that are set up for the unemployed which decrease spending on productive economic goods which decreases GDP.
Another economic indicator is the inflation... [continues]
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