Real GDP 3-5% Unemployment Rate 5% Further it goes under this Rate, the higher the inflation rate Inflation Rates- 0-2% CPI and PPI- 0-2%

Lower unemployment the higher the inflation rate. There is increased buying power. Higher unemployment lower inflation rate. There is decreased buying power.

Indicators (Future) Leading Indicators Average weekly hours in manufacturing Unemployment claims per week New orders for consumer goods ISM Index of New Orders Manufacture’s new orders non defense capital goods excluding aircraft orders new private housing unit permits Stock prices, 500 common stocks Leading Credit Index Interest rate spread 10 year treasury bonds less federal funds Average consumer expectations for business conditions Coincidental Indicators (Present) Number of employees on non-agricultural payrolls Personal income less transfer payments Industrial production Manufacturing and trade sale

Lagging Indicators (Past) Quarterly Reports from Businesses Annual Reports from businesses

Stagflation- High Unemployment and High Inflation Hyperinflation- Inflation increasing by 100% or more.