Macroeconomic analysis broadly focuses on three things:
National Output: GDP
Output, the most important concept of macroeconomics, refers to the total amount of goods and services a country produces
Unemployment
The unemployment rate tells macroeconomists how many people from the available pool of labor (the labor force) are unable to find work.
Inflation
The third main factor that macroeconomists look at is the inflation rate, or the rate at which prices rise.
^^When they get to the part about 'What Government can do' be careful, they are not talking about the Bankrupt, Corrupt One
Adding a couple of more links to help explain hype in the market, ect.
Stock Market Capitalization To GDP Ratio
http://www.investopedia.com/terms/m/marketcapgdp.asp
A ratio used to determine whether an overall market is undervalued or overvalued.
Typically, a result of greater than 100% is said to show that the market is overvalued, while a value of around 50%, which is near the historical average for the U.S. market, is said to show undervaluation.
In recent years, however, determining what percentage level is accurate in showing undervaluation and overvaluation has been hotly debated.
In 2000, according to statistics at the World Bank the market cap to GDP ratio for the U.S. was 153%, a sign of an overvalued market. With the U.S. market falling sharply after the dotcom bubble burst, this ratio may have some predictive value in signaling peaks in the market.
However, in 2003, the ratio was around 130%, which was still overvalued but the market went on to produce all-time highs over the next few years.
There is only one way GDP has risen in Q3.....that is, if companies were building up inventories.
Nearly every major company reporting earnings stated Q3 revenues were lower than Q2...meaning fewer products were sold.
Unless those companies wanted to ‘stock up’, there was no need for increased production because there was no increasing demand.
Add in the rising unemployment numbers and you can see another reason why GDP will be negative in Q3.
What is GDP and why is it so important?
http://www.investopedia.com/ask/answers/199.asp
It represents the total dollar valueof all goods and services produced over a specific time period - you can think of it as the size of the economy. For example, if the year-to-year GDP is up 3%, this is thought to mean that the economy has grown by 3% over the last year.
^
any growth this quarter will be because of the BIG Shrink thanks to 110th and 111th United State Congress
What difference does truth make? Just lie. Nobody will know the difference and the few that do will be marginalized and destroyed. Social deviants who cause trouble ala Glenn Beck...
Output, the most important concept of macroeconomics, refers to the total amount of goods and services a country produces
A question for FR. How is this measured? Do we just look at number of units sold by American companies? Because I don't see how we could be losing manufacturing jobs and continue with increases in GDP coupled with rising unemployment.
Also (as an aside) has productivity really increased or are we counting in the fact that we no longer do anything here in the US. So ipso facto we automatically have less people here in the US moving the same goods and services?
“Although it is consumers who ultimately determine the direction of the economy, governments also influence it through fiscal and monetary policy.”
The author has a blind spot. There is no mention of investment and investors. In Keynesian economics, which is taught in all schools, aggregate demand = C + I + G, consumption, investment, government. The Chicago and Vienna schools of economics are also aware of investment. Leave out investment and investora, and you you just about get what we are getting now, capital flight and growing unemployment.
Thank you! This is a great guide!
btt