## # A tibble: 1,096 × 5
## # Groups:   symbol [8]
##    symbol date       price   change text                
##    <chr>  <date>     <dbl>    <dbl> <glue>              
##  1 GDPC1  1947-01-01 2034. NA       1947.1,
## Growth: NA   
##  2 GDPC1  1947-04-01 2029. -0.00267 1947.2,
## Growth: -0.3%
##  3 GDPC1  1947-07-01 2025. -0.00207 1947.3,
## Growth: -0.2%
##  4 GDPC1  1947-10-01 2057.  0.0156  1947.4,
## Growth: 1.6% 
##  5 GDPC1  1948-01-01 2087.  0.0150  1948.1,
## Growth: 1.5% 
##  6 GDPC1  1948-04-01 2122.  0.0165  1948.2,
## Growth: 1.7% 
##  7 GDPC1  1948-07-01 2134.  0.00573 1948.3,
## Growth: 0.6% 
##  8 GDPC1  1948-10-01 2136.  0.00112 1948.4,
## Growth: 0.1% 
##  9 GDPC1  1949-01-01 2107. -0.0138  1949.1,
## Growth: -1.4%
## 10 GDPC1  1949-04-01 2100. -0.00341 1949.2,
## Growth: -0.3%
## # … with 1,086 more rows

Chater Openning Questions

Managers need to know:

Solution

your customers/products magnitude of spending changes timing of spending changes
consumer services very stable coincident with GDP
consumer nondurables stable coincident with GDP
consumer durables volatile coincident with GDP
housing construction very volatile leads fluctuations in GDP
capital spending very volatile lags fluctuations in GDP
govt. spending, federal moderate not always corr. with GDP
govt. spending, state & local stable lags fluctuations in GDP
exports volatile not corr. with GDP
imports volatile varies depending on product

Historical Experience

GDP Also known as gross domestic product measures the levels of inflation and measures the overall Economy in general

Gross Domestic Product

Profits across the Economic Cycle

Profits across the economic cycle can change drastically from even the smallest changes in the GDP.A good manager Well focus their attention I’m in economics surrounding their Business # Consumer Spending Consumer spending and GDP Are more similar than people realize. This makes consumer spending less random Two individuals with a basic understanding the economy.

GDP vs Consumer Spending

GDP vs Consumer Services

GDP vs Consumer Durables

GDP vs Consumer Non-Durables

Housing

GDP vs Nonresidential Construction

Capital Spending

Capital spending is very volatile. It lags behind the other economic cycle Which causes many big problemsThe big ticket items With long lead.

Government Spending

Government spending is usually not influenced by economic cycles. But local and state government spending can be hugely influenced by the economy.

Exports

Exports are not strongly correlated with the American economic Cycle,But they do help many different businesses.

Imports

Importing different products mainly relies on the number of demand that a company needs, or the economy needs.

Economic terms

Explan each of the following terms in your own words. The author explains the terms in the textbook. If necessary, you may also Google the term on the Web. Good resources include:

Gross Domestic Product (GDP)

The value of goods and services in a country over a period of time.

Real versus nominal GDP

The real GDP Is made to the general price Level and nominal GDP represents the GDP in current scenarios.

Gross National Product (GNP)

This is very similar to the gross domestic product, but you add net income from Foreign investments.

Recession

A econamic decline that effects many diffrent individuals for a period of time.

Leading Indicators

A economic variable that helps predict a potential economic change and helps predict the future of the market.

Economic events

An event that impacts the economy in either a big way such as a recession or economic boom. ## 2007 Great recession The 2007 great recession lasted from December 2007 to June 2009. The main influential factors that led to this recession was the collapse of the housing market fueled by low interest rates and much more. This impacted many different individuals by making their money practically almost worthless, and many of their investments were practically useless.