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Economic Indicators Essay Example

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Economic Indicators

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Economic Indicators. This in turn upsets the balance of trade, as net exports are negative, which results in more being imported and less being exported. Whereas, when an economy is in a slump, people tend to spend less on imported goods and services and just focus on the basic necessities. This encourages more goods and services to be exported and has a favorable impact on the balance of trade as less is being imported. Keynesian school of thought promotes the use of counter cyclical economic policies in order to reduce the consequence of the business cycle. In times of an upswing these polices cool down the economy while they stimulate it when it is down. One of these counter cyclical fiscal policies is progressive taxation.

Through progressive taxation people are taxed according to their income. As the income increases, taxation also increases. This helps in reducing the high demand. Hence this policy aims to decrease demand when the economy is enjoying a boom and thus it curbs down the boom. The retail sales are the monthly economic indicator that measures the sale of the retail goods over a period of time. The retail sales report measures the in store sales as well as the sales outside the store. It arranges the sales into categories like food, clothing, accessories etc. These figures published in the retail reports benefit the stock investors who are investing in these companies. The retailer buys the goods in bulk from the manufacturers and then either sells the goods through a wholesaler or by himself. Their buyers are both individuals and businesses. Hence it is a very vital and essential economic indicator in order to keep the cycle of investment and sales going side by side. The retail sales data may include the price signals that are sent to the consumers. In this way if the consumers demand more, the producers are signaled to increase their supply and vice versa. Question 2 Henry Hazlitt is one of the most famous American Economist. He has written several books but two of them; Economics in One Lesson (1946) and The Failure of the New Economics (1959) made an immense contribution to the world of economics. He provides an introduction to free market economies and has based the first book on Frédéric Bastiats essay "What is seen and what is Not Seen". He writes about the money spent on those things that are not beneficial to the society. In the other book he provided a detailed critique of  and provided reasoning for his own point. Economic Indicators.

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