Can someone help me answer these questions..


New Member
Dec 27, 2006
You read the following information about the economy:

:D 1. Real GDP up three percent from a year ago.
Unemployment rate of 6.1 percent.
Consumer Price Index up six percent from a year ago.
Index of Leading Indicators up for the last six months.
Prime interest rate of ten percent, up from seven percent a year ago.

a. Explain what each of these economic indicators measures and what the significance of the current data is for the economy.
b. These indicators should paint a picture of the entire economy. Describe that picture.

:cool: 2. The following headline appeared in 1986: "Inflation Rate at 1.1%; Lowest Rate in 2 Decades."
a. What is meant by inflation ?
b. How did the statisticians arrive at 1.1 percent? What measure did they probably use?
c. What does this headline imply about inflation during the 20 years before 1986?

:) 3. True, false, or uncertain, and why?

"If you won a million dollars in the lottery, you wouldn't have the economic problem of scarcity."