Explore BrainMass

Finding and Interpreting Macroeconomic Indicators

Interpreting Macroeconomic Indicators

Analyze several indicators of the macroeconomic conditions in an economy, such as interest rates, income, and other indicators such as CPI, inventory levels, wage rates, consumer confidence, etc. You may chose from these indicators:

Economic growth
Federal budget
Federal government spending
Federal government taxation
National debt
Fiscal policy
Social security
Interest rates
Monetary policy
Stock Market
Exchange rates
Foreign economic issues

Analyze these indicators and explain the expected short term impact on manufacturing firms in terms of product sales and operating costs.


Solution Preview

To display the data, copy the links into the address bar of your browser.

You can find economic data at the Federal Reserve research website at http://research.stlouisfed.org/fred2/

The most important indicators are called Leading Indicators because they change before the economy as a whole. They include:

Monetary policy http://research.stlouisfed.org/fred2/series/M1
The Federal Reserve has been pursuing an expansionary monetary policy in an attempt to stimulate investment spending.

Stock market ...

Solution Summary

How to access the Federal Reserve's research database and interpret the economic data to make short-term and long-term predictions about the economy.