Sunday, August 9, 2009

Current impact that changes in real GDP, the unemployment rate, and the inflation rate as measured b

I think what you want to know is what impact changes in these three factors have on the economy. The quick answer is nothing. These indicators really don%26#039;t impact the economy. They are indicators of the health of the economy and tell how well or badly it is doing. For instance, real GDP (which is nominal GDP adjusted for inflation) tells in real terms how the economy is growing. A healthy economy will see growth, and the US economy is considered to be growing healthily when it sees real GDP grow by 3.5% annually.



The unemployment rate is a bit of a deceitful statistic, as it can go down for several reasons, some good and some bad. If it goes down because more people are getting jobs because the economy is doing well, then it is a good thing. If it is going down because the economy is doing terribly and individuals decide to no longer look for work because they feel it is pointless, then it is a bad thing. This is called the discouraged worker effect.



The inflation rate tells how quickly prices are increasing in the economy. The Federal Reserve tries to target an inflation rate of about 2% annually. If the inflation rate increases too quickly, the purchasing power of individuals in the economy will be eroded, and thus it is indicative of an economy in trouble.



Hope this is what you were after.



Current impact that changes in real GDP, the unemployment rate, and the inflation rate as measured by the CPI?payment calculator





Please adjust the question. You need to add detail so that we can tell what you are asking.



GDP is the measure of the total economy



The unemployment rate is a measure of how many people are looking for work



CPI is the consumer price index, or the measure of inflation for real goods and services



Are you asking what factors impact these measures?

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