Post 16: Macroeconomics Visual Aid

Post 15: Economic Indicators

Leading Indicators:

1.  Building Permits
2.  Unemployment Insurance Claims
3.  Stock Prices

These indicators forshadow what is going to happen to the overall economy. For example if stock prices are falling, the economy usually goes throught a downturn or even a recession like today.

Coincident Indicators:

1.  Non-Agricultural Employment
2.  Personal Income
3.  Industrial Production

These indicators show how the economy is doing in its current state. For example, if personal income is higher overall, the economy is in a stronger state.

Lagging Indicators:

1.  Average Duration of Unemployment
2.  Average Prime Rate charged by banks
3.  The value of outstanding commercial and industrial loans

These indicators show patterns in the economy and can predict how and economy will do. For example, if the value of outstanding loans is lessening, the economy will most likely get better because businesses are making more profit to pay off loans.

Post 14: Reaction to Video

"My Humps" was an interesting video to say the least. The same goes for the business cycle rap. They both took humorous approaches in order to teach about the topic of business cycles. The quicki on the other hand took a more serious and direct approach which caught my attention more. I feel like I got the most out of the quicki even though it was so short. Another video that I found helpful was called Business Cycle on youtube. It is a lot more serious and includes a lot of facts that are essential to a business cycle.

Business Cycle Part 1

Post 13: 10 Things I Learned

1.  The process macroeconomists use to track production, income, and consumption is known as national income accounting and provides information about a country's economic activities.

2.  The most widely used NIPA is gross domestic product.

3.  To actually compute GDP, economists use the output-expenditure model.

4.  Personal consumption expenditures include durable goods, nondurable goods, and services.

5.  Gross investment is the total value of all capital goods produced in a given country in one year as well as changes in the dollar value of business inventories.

6.  Government transfer payments are not included when calculating government purchases.

7.  A price index is a set of statistics that allows economists to compare price over time.

8.  Illegal activities and unreported legal activities are part of the underground economy.

9.  Barter transactions, housework, and do-it-yourself home repairs are examples of non-market activities.

10. Indirect taxes are taxes included in the final price of goods and services.

Post 12: Letter to Editor

Dear Editor,

GDP is not an accurate way to measure a country's success. It includes everything a country produces and the wealth of the nation but not every aspect of the country. For example it does not include aspects about other countries that may help another country and territories and other things. A much more accurate measure would be GNP. GNP measures a countries wealth plus it's expenditures which makes it more accurate.

Post 11: 4x3 technique

Rules:
1. Add spending of private money.
2. Add government Spending.
3. Add the difference between imports and exports.

Ingredients:
1. Citizen Spending
2. Government Spending
3. Import Spending
4. Export Profits

Post 10: Macroeconomics

I think macroeconomics will be all about large scale and government spending. It mostly has to do with imports and exports along with production costs and public goods. This has a lot of interest to me because I plan on entering the business world after college and hope to invest in the stock market. The stock market would categorize as macroeconomics. 

Here are three things I wish to learn about in the Macroeconomics chapter:

1.  How do you categorize something as macro or micro economics?

2.  Can a single person really make that much of an impact on macroeconomics in America?

3.  How does macroeconomic activity affect average people?