Pantometry Versus Theory

This chapter focuses on various indicators and the different purposes they serve to predict economic health. Some economic indicators provide a snapshot of the economy's health. Similar to the way a doctor checks your vital signs, an economist might check the vital signs of the economy by looking at changes in gross domestic product (GDP), consumer price index (CPI), national income, or the unemployment rate. Real-time financial statements would rise to the level of coincident indicators, since they would track present performance. But what every business should develop is a set of leading indicators that would enable them to get a sense of which direction the business is heading.