Current State U.S Economy

The current state of the economy is one that is concerning for almost completely Americans. Though we atomic number 18 in the rec everywherey phase businesses are hushed hurting, people are egress of work, we are barely getting out of a depression etc. People are pointing fingers at what is the dress and who is to blame. What was once a strong healthy economy has now drastically changed. There are many economic indicators that are utilize to prize and provide an image of what is currently chance and what an outlook may be on the economy.Several of the important factors are the business cycle, consumer price index, stock prices, consumer authorization index, gross domestic product and unemployment rates. The overall picture of the economy is pertinent to its current business cycle. The business cycle is the recurring and fluctuating levels of economic activity that an economy experiences over a long period of time. The fiver stages of the cycle are growth, peak, recession , trough and recovery. As stated before we are in the recovery process but at a faint rate. One indicator is the Gross Domestic crop.The Gross Domestic Product (GDP) is the total market value of all goods and function produced, including total consumer, investment, and brass spending, plus the value of exports, minus the value of imports. It moves with the economy and describes whats happening right now. The GDP was at a huge even off a few years ago which resulted in our recession. Currently it has increased by 2. 7 percent which is indicating an improving economy. Another indicator is the Consumer harm Index. The Consumer Price Index ( consumer price index) is a measure of the change in the purchasing condition of currency and the rate of inflation.It shows the current price of a basket of goods and serve in terms of the prices during the same period during the previous year. The purpose of the CPI is to show the effect of inflation on purchasing power. The basket of good s and services includes energy (gas prices) and food as well as other goods and services. The decline leads to deflation instead of inflation where consumers hold off on purchases in hopes of get prices. Consumers are feeling pretty confident and spending has increased over time but not by much jumper lead to the consumer dominance Index.The Consumer Confidence Index is a measure of how well the average American thinks the economy is doing and will do in the short-term. Stock prices are leading indicators of economic activity. If the market goes up and sustains upward activity this is seen as a good economic sign. The measure of stock prices comes from the Standard and Poors 500 index not the Down Jones Industrial Average. In family line 2012 the S&P 500 index ended more than 25 percent above August. If current trends continue the economy will be vastly improved. The Unemployment rate is also used to understand an economy.The unemployment rate shows the economys production, mys terious consumption, workers earnings, and consumer sentiment. A level unemployment rate translates into more employed individuals with paychecks, which leads to higher consumer spending, economic growth and potential inflationary pressures. High levels of unemployment are connected with lower incomes, lower spending, and economic stagnation. Our economy has seen the rates change up and down but the growing trend is our unemployment rate is lowering. All these indicators are used to describe the current economy.Though we are not at our highest point, we are lento moving on the upward side. A pace that most begettert like but relative to the recession years ago its surly a vast improvement. November 30, 2012 U. S. Department of Commerce business office of Economic Analysis U. S. Economic Accounts Retrieved on November 30, 2012 from http//www. bea. gov/ Cunningham, Steven P. H. D The Consumer Sees Reason to go on American Institute for Economic Research Retrieved on November 30, 2012 from https//www. aier. org/article/7864-consumer-sees-reasons-spend