14. The Producer Price Index (PPI) measures wholesale price levels in the economy. Wholesale price increases often get passed along to the consumer. The Core PPI excludes food and energy prices, which tend to be volatile. When there is a drop in the PPI, it is generally followed by a drop in the CPI. Inflation Rate: Producer Price Index
18. One of the goals of an economy is low unemployment. After viewing this chart on the jobless rate, what can be said about the United States' attempt to reach that goal? Jobless Rate Source: Bureau of Labor Statistics Source: Bureau of Labor Statistics
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20. Consumer confidence is another economic indicator that provides a view of how consumers feel about their economic prospects (employment, spending). What conclusions can be drawn from a review of these three charts? What trend is apparent? Why should marketers be concerned with changes in consumer confidence? Consumer Confidence Source: The Conference Board Source: The Conference Board Source: The Conference Board
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23. Productivity is a crucial factor in a country's standard of living. What would you surmise about the United States' standard of living for the last five years depicted on this chart? Why do you think employee productivity is increasing? Productivity and Standard of Living Source: Bureau of Economic Analysis, Bureau of Labor Statistics
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25. A period of economic growth and expansion. Nationwide there is low unemployment, an increase in the output of goods and services, and high consumer spending. Prosperity
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30. The federal funds rate (rate banks charge each other for overnight loans) and the discount rate (rate the U.S. Federal Reserve charges banks that borrow money from it) are used to speed up or slow down an economy. From this chart, what do you think the motivation of the Federal Reserve Board was in 1991? In 1999? Would you prefer to start a new business when interest rates are high or low? Managing the Economy Source: Federal Reserve, Labor Department
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32. "I've called the family together to announce that, because of inflation, I'm going to have to let two of you go."
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