Please read and write (a) detailed response for each question .

1. An economy's gross domestic product, or GDP, provides the overall value of the goods and services that the economy produces and indicates whether it is growing or slowing. The Department of Commerce's look at the quarterly change in GDP breaks down the activity into changes in consumer spending, business investment, and government spending, as well as the net impact of foreign trade. The government puts out a preliminary first estimate, updates with a revised second reading as it gets more input, and then delivers a third and final report. GDP is important becauseit gives information about the size of the economy and how an economy is performing. The growth rate of real GDP is often used as an indicator of the general health of the economy. In broad terms, an increase in real GDP is interpreted as a sign that the economy is doing well.

The Department of Labor puts out a monthly release on employment that includes the number of jobs created the previous month by the private sector, the government, and some specific industries, as well as the national unemployment rate. Low unemployment can point to a strong economy, but can also predict rising inflation. The employment-to-population ratio, because it is unaffected by voluntary changes in labor force participation, isa useful indicator of current labor market conditions. Lows in the employment-to-population ratio correspond with economic downturns.

Consumer spending accounts for two-thirds of the U.S. gross domestic product and is a good gauge of consumer health. The Department of Commerce's monthly release on personal income and outlays provides data on consumer spending. It also provides information on inflation through a price index that reflects changes in how much consumers have to spend to buy certain items. Consumer spending is, naturally, very important to businesses.The more money consumers spend at a given company, the better that company tends to perform. For this reason, it is unsurprising that most investors and businesses pay a great amount of attention to consumer spending figures and patterns.

Inflation is the general price level rise of goods and services in an economy. Too much inflation can mean the economy is overheating while very low inflation can be a harbinger of economic recession. Depending upon the selected set of goods and services used, multiple inflation values are calculated and tracked as inflation indexes. The most commonly used inflation indexes are the Consumer Price Index (CPI) and the Wholesale Price Index (WPI). The Producer Price Index (PPI) is also used to measure inflation as it relates to producers. Inflation affects all aspects of the economy, from consumer spending, business investment, and employment rates to government programs, tax policies, and interest rates. Understanding inflation is crucial to investing because inflation can reduce the value of investment returns

The Department of Commerce's monthly release on retail and food services sales is an indication of consumer spending health. This report shows retail sales in various sectors, such as department stores, furniture stores, and home furnishing stores. Retail sales represent a key macroeconomic metric thattracks consumer demand for finished goods. Consumer purchases of durable and non-durable goods are compiled in a report. The retail sales report helps analysts and investors gauge the health of the economy and any inflationary pressures that may exist.

2. To develop an economy, you need to improve people's living standards and well-being.

The purpose of economic development is to increase the capabilities of people over time (people development). As a result, economic development involves much more than just increasing incomes and outputs; it also involves poverty reduction and income redistribution on a macroeconomic level.

Economic growth plays a vital role in economic development; when more goods and services are produced, everyone is better off. An economy experiencing economic growth is not guaranteed to experience economic development and vice versa.

Five economic indicators:

Gross Domestic Product (GDP)

Purchasing Manager's Index (PMI)

Consumer Purchasing Index (CPI)

Producer Price Index (PRI

Unemployment Rate

Three important indicators:

Unemployment Rate

The unemployment rate shows how many people are unemployed and looking for work. The unemployment rate and the number of jobs added or lost each month tell you how the economy is doing. We get monthly updates on the unemployment rate and nonfarm payroll jobs from the Bureau of Labor Statistics.

High unemployment, for example, usually means the economy is not creating enough jobs. The number of nonfarm payroll jobs added for the month can signal that the economy is doing well when it exceeds expectations. Because of my position as a staffing manager, I have chosen this indicator because we always look to see where we are with staffing. We are always looking at and talking about unemployment statistics. Low unemployment means we need to think harder and wiser about recruiting.

Gross Domestic Product (GDP) -Consumption

GDP is simply the dollar value of the goods and services produced by a nation. GDP and the economy move together. In other words, if the former grows, the latter will also grow. In the event of a decline in GDP, the prices of goods and services are likely to decrease. As a result of this deterioration, the stock market, which is a reflection of company performance, is affected.

A reduction in the price of goods and services results in brand losses, affecting stock prices. Consequently, the global economy suffers.

We see this in almost everything we purchase today, so I chose GDP. If you sell a bicycle tire to a manufacturer, the tire is not a final product since the manufacturer does not use it. The same value production will not be double-counted.

Consumer Purchasing Index (CPI)

The Bureau of Labor Statistics reports this data on a monthly basis. This index measures the rate of inflation by measuring the change in the price of a hypothetical basket of goods that a typical household would purchase for consumption, such as food, housing, clothing, medical care, appliances, automobiles, and so forth. As the most commonly publicized measure of inflation, I chose the CPI measure. This is because it is recognized worldwide and is discussed in the news daily.