Today we touched on the six key variables that macroeconomists examine:
- Real GDP
- Unemployment Rate
- Interest Rate
- Inflation Rate
- Stock Market Indices
- Exchange Rate
We did not get to investor preferences (stock vs. bond), or to talking about the exchange rate. We will cover that next time, along with how to calculate the GDP and the CPI.
After today’s class though, you should read my earlier posting on the NBER’s opinion whether we are in a recession or not. It would make some sense now – and answer the question of “what is a recession?” I would also recommend that you read the Economist article posted in the ‘Handouts’ section to the right. It’s about why oil prices were good predictors of a recession, but are not anymore. It will be discussed in next week’s discussion section.
I gave out your first assignment – due on Tuesday (2/5). More on that will be posted soon.