Topic:
“At the start of 2017, the forecasters correctly predicted the Federal
Reserve would raise interest rates three times by the end of the year,
and their other forecasts were all reasonably close to the mark. They
saw a 4.3% unemployment rate at year’s end. It was actually 4.1%. They
thought GDP would expand 2.3% on the year, versus actual growth of 2.5%.
They saw headline inflation of 1.9% and core inflation of 1.7%, versus
actual figures of 1.7% and 1.5%.”
-Wall Street Journal
Based on the above information, analyze the five key indicators of
Economic Growth: federal-funds rate, unemployment rate, GDP growth,
inflation, core inflation.
Also, discuss how these 5 indicators impact real interest rates.
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