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Research the current value of the following economic inddicators GDP cpi NONFARM

ID: 2505918 • Letter: R

Question

Research the current value of the following economic inddicators

GDP

cpi

NONFARM PAYROLL EMPLOYMENT

INDUSTRIAL PRODUCTION/CAPACITY UTILIZATION

ADVANCE REPORT ON DURABLE GOODS HIPMENT,NEW ORDERS,AND UNFILLED ORDERS

HOUSING STARTS

RETAIL SALES

S&P 500 STOCK INDEX


ANALYSE THE CURRENT MACROECONOMIC SITUATION

DISCUSS EXPECTATIONS OF CHANGE IN ECONOMIC, FINANCIAL AND INTERNATIONAL CONDITIONS IN THE NEAR FUTURE

IDENTIFY ANY ECONOMIC ISSUES OF SPECIAL CONCERN

RECOMMEND WHETHER THE FOMC SHOULD RAISE, LOWER OR KEEP SHORT TERM INTEREST RATES THE SAME

Explanation / Answer

A) GDP= $15.68 trillion

GDP per capita= $49,965.27


B)CPI=232.957 that is there has been rise of 132.957% since 1983


C)Non farm payroll has increased to 74 thousand in Jan.2014


D)Industrial production= It has increased by 3.7% as calculated in dec. 2013


E)New order decreased by 4.3% to value of $229.3 billion

Shipment decreased by 1.9%

Unfilled order rose by 0.4%


F)Housing start has increased to 23 %


G)Retail sales has increased by 5 %


H)Current index is 1755.20 with a increase by 0..76 %


CURRENT MACROECONOMIC SITUATION: Currently GDP is growing at a very slow rate and personal income is decreased by 0.2%.Also U.S. current-account deficit decreased in the third quarter of 2013 and State personal income growth slowed slightly to 1.1 percent in the third quarter of 2013, from 1.2 percent in the second quarter.


Change in economic,financial and international conditions can arise if the economy is stable and there should be rise in every area except inflation.It is expected that there will be good rise in GDP till the end of year and international condition depend upon the trade and if that goes well then there will be sure rise in internnational condition.


Some of the economic issues of major concern are:

1.Growing crisis in form of recession.

2.Growth of china as a major exporter to all the countries

3.Increase in domestic business cost


FOMC should lower interest rates as it help to maintain financial system to a proper level.

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