Inflation and United States Economy

1019 WordsJan 11, 20135 Pages
Economic Forecasting: An Internet WebQuest [pic] INTRODUCTION 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…show more content…
2001 2.83 % 2002 1.59 % 2003 2.27 % 2004 2.68 % 2005 3.39 % 20063.24 % 20072.85 % 2008 3.85 % 2009 -0.34 % 2010 1.64 % 2011 3.16 % When is the last time we experienced deflation (prices actually dropped- you will have to go back a few decades)? Since 1970, what year had the highest inflation rate? What was the rate? Compile these pieces into a coherent recommendation to Ms. Jones. Should she bring her guava jelly business to the United States? What is the outlook for the economic health of the nation? Type a Word document incorporating the leading economic indicators and the information Ms. Jones is interested in. Prepare a report or powerpoint for your client that includes: - at least one graph/chart for each of the three indicators. - a brief explanation of the status of that indicator. - a prediction for the health of the United States economy over the next 12 months. Components of GDP Determine if each of the items listed below should be included in GDP and under which component or components: Consumption, Investment, Government, Exports or Imports. Circle ones that are counted, determine category on the left. Catogory 1. A stereo produced and sold in the US by a Japanese company _____ 2. College tuition _____ 3. Social Security payments _____ 4. Microsoft stock purchased from Microsoft _____ 5. A space shuttle launch _____ 6. The purchase of a plane ticket to
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