Economic Forecasting Essay

A discussions theirs many ways to get historic economic forecast data. Economic forecasting is a process that provides information for economic improvement for the future. The two forecasted data that really stood out where the unemployment rate and Gross domestic product (GDP). The unemployment rate shows the number of people who are willing to work and to looking for a job, but can’t find one.If unemployment rates are up it show that the economy is in a recession or headed that way.

When the unemployment rates are down people are generally working and spending more money, and the economy is showing growth. The Unemployment rate is quantitative forecasting, because we’re dealing with numerical data. The Gross Domestic Product (GDP) is all goods and services produce in one year. GDP is made up of four categories. They are consumption, investment, government spending and net exports. We learned that consumption is how e buy goods and services for our households.

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Examples are food, furniture, and other everyday purchases we buy. Investment is how our saving is used by business to buy other goods and service to increase their outputs. Examples are factories and equipment used for production.

Government spending is when government buys goods and services. The largest part of the government spending is called transfer payments that are not part of the gross domestic product. Transfer payments are payments that the government provides to individuals that are free.Then, there’s Net Exports which are goods and services we produce in the US and sale to other countries. The Gross Domestic Product is quantitative forecasting, because it’s a mixture of components to determine if the country is in recession. In conclusion, what we’ve learned is both of these resources the unemployment rate and gross domestic product are major components to collecting economic data for a more productive economy for the future.

But, we do believe the government still have ways to manipulate the economy with the data they collect.