1. Introduction to Economics Johnstown High School Mr. Cox
Economic Indicators
Introduction to Economics
Johnstown High School
Mr. Cox

2. Economic Indicators
Economic data used to interpret current or future investment possibilities and judge the overall health of an economy.
Types of Indicators
Leading Indicators: indicates future changes or trends in the economy (Building permits, retail sales, stock market activity)
Lagging Indicators: indicates change in the economy after a particular pattern or trend has begun/happened ( unemployment, corporate profits and labor cost per unit of output)
Coincident Indicators: occur at the same time as the economic trend (employment, real earnings, and the unemployment rate.)
Examples Include:
Consumer Price Index (CPI)
Gross Domestic Product (GDP) and Gross National Product (GNP)
Unemployment statistics

3. CPI (Consumer Price Index)
Measure that examines the average of prices of goods and services in a “basket”
CPI is calculated by averaging price changes for these goods
Averages are compared over years to study trends in the economy
Used to assess cost of living
Used to identify periods of inflation or deflation
Rise in CPI indicates a period of inflation

4. GDP and GNP
Gross Domestic Product
Gross National Product
Value of products & Services produced within the territorial boundary of a country.
Assesses the strength of a country’s local economy
Can be calculated Per Capita (per person) or as a total to compare nations
Value of Goods and Services produced by all nationals of a country (inside and outside of national borders)
Assesses the well-being of nationals
Usually calculated as Per Capita figure, can be calculated top compare nations
Country with Highest
USA ($17.42 Trillion).
USA (~ $11.5 Trillion)

6. Unemployment Statistics
High unemployment Rates
Indicate that national economy is weak, generally…
Must identify type of unemployment
Structural or cyclical means growth could be coming
Look for trends, is rate growing or shrinking?
High employment (low unemployment) rates indicate that an economy is healthy
People are working/earning money, therefore are spending
Any rate above 10% is generally considered to be high, especially in developed countries