Aggregate activity and demand: Economic indicators

5.3 Economic indicators

Activities

OpenStax College: "Macroeconomics, Chapter 19: Introduction to Macroeconomic Policy Around the World"

• Read this chapter introduction which explains how some indicators are used to compare global economies.

Wikipedia: "Economic Indicators"

• Read this article. In this article, you will observe the set of variables for the leading indicator, and you should be able to draw comparisons between it and the coincident and the lagging indicators.
  Unlike the leading economic indicator, the coincident indicator provides an estimate of the current state of the economy. In this reading, you will observe the set of variables for this indicator, and you should be able to draw comparisons between this and the leading and the lagging indicators.
  Unlike the other two indicators, the lagging indicator provides an estimate of the state of the economy after the fact. For instance, the unemployment rate, as a lagging indicator, will decrease (increase) after an economic expansion (contraction) already began. In this reading, you will observe the set of variables for this indicator, and you should be able to draw comparisons among this and the leading and coincident indicators.

Wikipedia: "Consumer Confidence Index"

• Read this article. Consumer confidence is important to measure because it can provide a reading on whether consumers are optimistic or pessimistic in their economic outlook. Their perspectives give hints about future purchases. For example, durable goods last a long time and consumers will postpone a purchase until they believe the economy is moving in the right direction.