Economic Indicators and the Business Cycle

Environmental quality and sustainability.

Overall levels of government spending.

Net exports of goods and services.

Total nationwide consumption and investment.

Imported goods consumption.

Leisure time.

Government tax revenues.

Domestic financial investment.

Increasing transfer payments

Decreasing taxes

Increasing subsidies

Increasing taxes

Illegal and informal sectors are represented in other statistics that, together with GDP, provide a complete picture of economic health.

Since illegal and informal activities are typically minimal, their exclusion has negligible impact on overall GDP figures.

The sectors are considered detrimental; thus excluding them from GDP better represents the positive aspects of an economy's expansion.

By leaving out this substantial sector, it could lead to an underestimation of actual economic activity and size.

Externalities

Population size

Economic growth

Industrial output

As it includes all financial transactions regardless of product changes.

Since it counts only new innovations but ignores existing product improvements.

It mainly measures quantity, not quality enhancements or variation in goods and services.

Because only non-durable goods are counted in its calculation.

The nation is facing a deficit in capital and financial accounts balancing trade flows.

Domestic investment opportunities are becoming less attractive compared to overseas options.

The country is exporting more than it imports, accumulating wealth from abroad.

Consumer spending within the country is outpacing production leading to inflationary pressures.

The environmental costs are not captured by current measures of output.

The environmental costs are captured by current measures of output.

The failure to comprehend future expenses or reduced quality of life is captured by current measures of output.

Environmental degradation may lead to future expenses or reduced quality of life that won't be captured by current measures of output.

Increasing taxes and decreasing spending

Increasing taxes and increasing spending

Keeping taxes and spending at current levels

Decreasing taxes and increasing spending

Non-discretionary (or automatic stabilizers)

Cyclical adjustment policy

Discretionary expansionary policy

Discretionary contractionary policy