Economic Indicators : A Economic Indicator

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Introduction Economic Indicators are pieces of data that is usually of the macroeconomic scale that is used by investors to calculate current and future investment opportunities. They also help them decide the health of an economy. An economic indicator can be anything the investor chooses, but certain kinds of data that is released by the government and non-profit organizations are widely followed (Investopedia, 2015). Economic Indicators An economic indicator can have one of the three types of relationships to the economy. These would be procyclic, acyclic, and coutnercyclic. Procyclic economic indicators move in sync with the direction as the economy. A countercyclic economic indicator is the opposite of procyclic where as…show more content…
When output rises the GDP increases and when the output decreases, the GDP will as well. This is known as the business. Real GDP tends to take pricing increases into account as well as providing a more accurate result of a production increase. This type of GDP is usually used to forecast sales, stock prices and earnings which are based on a quarterly review on most current information or data. Information that is provided in the GDP would be current supply and demand of durable and nondurable goods, services and structures. Starbucks is a company that provides both goods and services to the consumer. Every business relies on the GDP for many reasons. Investors use these reports to prepare the company for future planning. Representing close to 70% of the GDP, consumer spending for services and goods like those produced by Starbucks has been the fuel that propels US economic growth. Starbucks would was at 6% in 2014 in the overall GDP for the United States and 7% in China. Starbucks relies on the GDP to help investors better analyze trends and with making recommendations for the overall health of the company. The US GDP is a large contributing factor for investors, companies that helps them with their decision making. When Starbucks decides to invest in a company or product, the GDP is one of the main sources that are viewed for retaining information to help them make the big economic decisions. Unemployment Every company is affected by
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