20 terms

Reporting on the Economy


Terms in this set (...)

Conference Board
A private research group that publishes regular, unbiased forecasts of economic indicators.
Consumer Confidence Index
A Conference Board measurement of how optimistic or pessimistic consumers feel about the economy.
The rate at which the price of goods and services in the economy is falling.
A severe and prolonged recession in the economy marked by lower productivity, higher unemployment and falling prices.
Durable goods
Products consumers purchase that do not need to be purchased frequently because they are made to last for a long period of time.
The science dealing with the production, distribution and consumption of goods and services and with the issues of labor, finance and taxation.

A social science that studies how individuals, governments, firms and nations make choices on allocating their scarce resources to satisfy their unlimited wants.
Federal Reserve Board
The governing body of the Federal Reserve System. Members are appointed to the Board of Governors by the president but must be approved by the Senate.
Federal Open Market Committee (FOMC)
It oversees the nation's open market operations (i.e. the Fed's buying and selling of U.S. Treasury securities). It sets monetary policy by specifying the short-term objective for the Fed's open market operations.
Form 990
A document filed with the IRS by virtually every nonprofit organization and foundation. The filing discloses revenue, expenditures and salaries for management.

Shows things like salaries, income, expenses, fundraising expenses, etc.
Gross Domestic Product (GDP)
The monetary value of all goods, services and products made by an economy during a certain time period. It includes purchases, investments and exports minus imports.
Housing starts
The number of residential buildings that have begun construction in any month.
The rate at which the average price of all goods and services in the economy from one year to the next is rising and, therefore, purchasing power is falling.
Labor force participation
The number of people who are either employed or actively looking for work as a share of the population that could be working.

Not included are: people younger than 16, students, retirees, homemakers, military personnel, prisoners, disabled, discouraged workers
Lagging indicator
An economic measurement that begins to change after the economy has already moved in that direction.
Leading indicator
An economic measurement that begins to change before the economy moves in that direction.
National Bureau of Economic Research
A committee of 6-8 of its scholars declares a recession when they conclude there has been "a significant decline in economic activity spread across the economy, lasting more than a few months."
Nonprofit organization
A business created to provide a good or service to the community without making money. Many, however, do have more revenue than expenses.
Output ÷ input
Output being being the goods and services produced and input being the number of worker hours.
A decline in the GDP for at least two consecutive quarters, but Greg Ip would say this isn't a practical measure because GDP is often revised. He would instead argue NBER's definition that it is "a significant decline in economic activity spread across the economy, lasting more than a few months."
Unemployment rate
A measure of how many people are out of the labor force but are looking for work.