Indicators Essay Example | Topics and Well Written Essays - 1250 words

Indicators - Essay ExampleThis cuts costs for businesses which would enable them to reinvest the spare cans and postulate more workers.There are also other ways that should be considered to address the problem of unemployment. These include training programs that are better than those in the past. This willing ensure that the skills of employees are better matched to the jobs that are newly available.The full-time employment policies should also push for full-time employment a bit faster. This is because when labor markets contract tight, companies go ahead and hire any individual even those who have been unemployed for a time greater than one year.The gross domestic output is defined as the output of the final goods and services that are produced by a country. The gross domestic product is calculated as Personal Consumption Expenditure increase Investment plus Government Expenditure plus (Exports minus Imports)The advantage of using real GDP is that it is dynamic because it cha nges with the constantly new figures. It is the best index of the overall economic health of a nation. The past figures show that GDP has increased since the last quarter and has been showing an increasing trend for the past twain years.GDP is used as a coincident indicator as it changes at the same time the economy does. A negative economic product for two quarters that are consecutive is considered a recession and the Federal Reserve usually lower the interest rates in this period in order to increase the rate at which the economy is growing and to stimulate the economy. Real GDP takes into account inflation as we multiply the nominal GDP with a deflator. GDP tells us if the economy is growing more quickly or slower than past years. The US sustainable rate as believed by economists is between 2.5% and 3 % as that has been the average rate in the past.The five components of GDP as cited above are private consumption, government consumption, investment and lowest exports. The