What do each of the following areas tell us about the health
What do each of the following areas tell us about the health of the economy, in recent historical context:
A. Corporate profits; B. Labor force participation; C. The consumer price index and its components; and D. The money stock and interest rates
Solution
The most important macroeconomic indicator which tells us about financial and economic health of the nation is the money supply in the country and the prevailing interest rates. This is the main factor which derives the investment in and out of the nation. This is the factor which strengthens the currency in the global economy.
