Economic Indicators

1. "List and describe briefly the economic policy objectives of the nation”

2. "What are the life cycle stages of corporations and other business firms?

3. "An economic indicator is data, usually of macroeconomic scale, used by investors to interpret current or future investment possibilities and to judge the overall health of an economy. Identify and define five economic indicators. Use the library or internet sources to complete this exercise.

1. "Our nation's economic policy actions are directed toward four general goals:

a. 1. Economic growth - output that increases faster than the population so that the average output per person expands. Function of 2 components: increasing stock of prodcutive resources and improved technology and skills.

b. 2. High employment - Unemployment has both an economic and psychological cost for the person and the nation. High levels of unemployment place a strain on the nation's economy, although wide swings (from low levels of unemployment to high and back to low again) can also place high levels of strain on the economy. This is why it is one of the policy objectives to stabilize these levels as much as possible.

c. 3. Price stability - consistently stable prices help create an environment in which the other economic goals are more easily reached.

d. 4. Balance in international transactions - nations must maintain an equilibrium of imports and exports in order to attract investors.

2. "The four life cycle stages of a successful business firm (corporation) are:

e. 1. Startup stage

f. 2. Survival stage

g. 3. Rapid growth stage

h. 4. Maturity stage

3. Indicators:

i. "Personal Income and Outlays Report - Measures consumers income and how much they are saving, as well as, how much they are spending and where they are spending it. This report tracks spending in some areas such as durable goods, nondurable goods, and services. It can be...