how do you know what phase of the business cycle we are in?\na. economic indicators – economists examine…

how do you know what phase of the business cycle we are in?\na. economic indicators – economists examine many variables in the economy to determine when there is a change in the business cycle.\nleading indicators: 12 variables, such as, average work week, number of new houses, layoff rate... which change\ncoincident indicators: 4 variables, such as, employment rate, personal income, sales.... which change\nlagging indicators: 6 variables, such as, average length of unemployment, prime rate, consumer debt.... which change\nb. other measures of the economy\ngdp: gross domestic product -\nreal gdp:\nnominal gdp:\ncpi: consumer price index-\nadditional terms to know:\nstagflation\ndeflation\ninflation

how do you know what phase of the business cycle we are in?\na. economic indicators – economists examine many variables in the economy to determine when there is a change in the business cycle.\nleading indicators: 12 variables, such as, average work week, number of new houses, layoff rate... which change\ncoincident indicators: 4 variables, such as, employment rate, personal income, sales.... which change\nlagging indicators: 6 variables, such as, average length of unemployment, prime rate, consumer debt.... which change\nb. other measures of the economy\ngdp: gross domestic product -\nreal gdp:\nnominal gdp:\ncpi: consumer price index-\nadditional terms to know:\nstagflation\ndeflation\ninflation

Answer

Brief Explanations:

Economists use economic indicators like leading, coincident, and lagging ones, along with GDP - real and nominal, and CPI. Concepts such as stagflation, deflation, and inflation also play a role in determining the business - cycle phase.

Answer:

A. Economic indicators - economists examine many variables in the economy to determine when there is a change in the business cycle. B. Other Measures of the Economy including GDP (Real GDP, Nominal GDP), CPI, and concepts like Stagflation, Deflation, Inflation are also considered.