Are you economic savvy
Are you economic savvy? What Is Economic Forecasting? Economic forecasting is the process of attempting to predict the future condition of the economy using a combination of important and widely followed indicators . Economic forecasting involves the building of statistical models with inputs of several key variables, or indicators, typically in an attempt to come up with a future gross domestic product (GDP) growth rate . Primary economic indicators include inflation , interest rates , industrial production , consumer confidence , worker productivity , retail sales , and unemployment rates . 1.INFLATION Inflation is the decline of purchasing power of a given currency over time. A quantitative estimate of the rate at which the decline in purchasing power occurs can be reflected in the increase of an average price level of a basket of selected goods and services in an economy over some period of time. The rise in the general level of prices, often expressed as a perc
