Monday, January 10, 2011
Post 16
Mr. Campbell asked us to create a visal that would help us on the Chapter 10 test. I made one on the Business Cycle:
Thursday, January 6, 2011
Post 15
Leading - These types of indicators signal future events. Think of how the amber traffic light indicates the coming of the red light. In the world of finance, leading indicators work the same way but are less accurate than the street light. Bond yields are thought to be a good leading indicator of the stock market because bond traders anticipate and speculate trends in the economy (even though they aren't always right).
Lagging - A lagging indicator is one that follows an event. Back to our traffic light example: the amber light is a lagging indicator for the green light because amber trails green. The importance of a lagging indicator is its ability to confirm that a pattern is occurring or about to occur. Unemployment is one of the most popular lagging indicators. If the unemployment rate is rising, it indicates that the economy has been doing poorly.
Coincident - These indicators occur at approximately the same time as the conditions they signify. In our traffic light example, the green light would be a coincidental indicator of the associated pedestrian walk signal. Rather than predicting future events, these types of indicators change at the same time as the economy or stock market. Personal income is a coincidental indicator for the economy: high personal income rates will coincide with a strong economy.
Leading- Housing market
Lagging- Unemployment rate
Coincident- Non-farm payrolls
Lagging - A lagging indicator is one that follows an event. Back to our traffic light example: the amber light is a lagging indicator for the green light because amber trails green. The importance of a lagging indicator is its ability to confirm that a pattern is occurring or about to occur. Unemployment is one of the most popular lagging indicators. If the unemployment rate is rising, it indicates that the economy has been doing poorly.
Coincident - These indicators occur at approximately the same time as the conditions they signify. In our traffic light example, the green light would be a coincidental indicator of the associated pedestrian walk signal. Rather than predicting future events, these types of indicators change at the same time as the economy or stock market. Personal income is a coincidental indicator for the economy: high personal income rates will coincide with a strong economy.
Leading- Housing market
Lagging- Unemployment rate
Coincident- Non-farm payrolls
Post 14
Mr. Campbell asked us to write a reaction to a youtube video – “My Humps” and the Business Cycle Rap. Then to watch this Qwiki and to find a link to a better video or website for Business cycles. Also to determine if it was helpful or silly? And what source was more useful?
I thought that these videos were a little silly, but useful. I think that this is a good idea for a class project because it helps the students learn about the subject, as well as having fun at the same time.
I thought that these videos were a little silly, but useful. I think that this is a good idea for a class project because it helps the students learn about the subject, as well as having fun at the same time.
Wednesday, January 5, 2011
Post 13
Mr.Campbell asked us to take three quizzes, and to explain 10 things that we learned or things that got 'cleared up.'
1) War is considered an external factor
2) Indirect Taxes are included in final tax price
3) US does not have to import lumber or coal, only oil
4) Economic Growth is essential to prosperity
5) American productivity growth has slowed down since the 60's
6) A business cycle is just a market fluctuation
7) The great depression was the most severe contraction in the American Economy
8) Economists track things using "National Income Accounting"
9) There is a separate economy called the underground economy
10) To calculate GDP economists use output-expenditure model6) A business cycle is just a market fluctuation
2) Indirect Taxes are included in final tax price
3) US does not have to import lumber or coal, only oil
4) Economic Growth is essential to prosperity
5) American productivity growth has slowed down since the 60's
6) A business cycle is just a market fluctuation
7) The great depression was the most severe contraction in the American Economy
8) Economists track things using "National Income Accounting"
9) There is a separate economy called the underground economy
10) To calculate GDP economists use output-expenditure model6) A business cycle is just a market fluctuation
Post 12
Mr. Campbell asked us to write a letter to the editor about how GDP is a faulty indicator.
To whom this may concern,
The GDP is a faulty indicator to calculate the total market value of all goods and services during the year. This is because it treats crime, divorce and natural disasters as economic gain. It ignores the non-market economy of households and the communities. It also treats the depletion of natural capital as income and it increases with pollution activities and as well as the clean up of the pollution. GPI, Genuine Progress Indicator, is a better indicator because it includes the non-market economy of households and the communities.
To whom this may concern,
The GDP is a faulty indicator to calculate the total market value of all goods and services during the year. This is because it treats crime, divorce and natural disasters as economic gain. It ignores the non-market economy of households and the communities. It also treats the depletion of natural capital as income and it increases with pollution activities and as well as the clean up of the pollution. GPI, Genuine Progress Indicator, is a better indicator because it includes the non-market economy of households and the communities.
Tuesday, January 4, 2011
Post 11
Mr. Campbell asked us to use the 4x3 technique. 3 rules and 4 ingredients to create a recipe or math forula that explains how GDP is calculated.
Formula
GDP = private consumption + gross investment + government spending + (exports − imports)
Rules
-Includes only goods and services purchased by their final users, so GDP measures final production.
-Counts only the goods and services produced within the country's borders during the year, whether by citizens or foreigners.
-Excludes financial transactions and transfer payments since they do not represent current production.
Formula
GDP = private consumption + gross investment + government spending + (exports − imports)
Rules
-Includes only goods and services purchased by their final users, so GDP measures final production.
-Counts only the goods and services produced within the country's borders during the year, whether by citizens or foreigners.
-Excludes financial transactions and transfer payments since they do not represent current production.
Monday, January 3, 2011
Post 10
Mr. Campbell asked us to write what we think macroeconomics is all about? What interests us about this topic? and to list three things that we hope to learn.
I think macroeconomics is going to be about the study of economics of the whole. For example, not just one company, but all the industries in that line of business. The that interests me the most is how they calculate inflation and how they can tell how much it will go up or down. I would like to learn about inflation, GDP, and how they calculate/predict interest rates.
I think macroeconomics is going to be about the study of economics of the whole. For example, not just one company, but all the industries in that line of business. The that interests me the most is how they calculate inflation and how they can tell how much it will go up or down. I would like to learn about inflation, GDP, and how they calculate/predict interest rates.
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