The Primary Business Cycle. Components and Measures. Components Supply of Money Demand for Money Price of Money Demand for Goods Supply of Goods Price of Goods. Measures Coincident Indicators Leading Indicators Lagging Indicators C/L Ratio. Components & Measures .
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The Primary Business Cycle
Components and Measures
Supply of Money
Demand for Money
Price of Money
Demand for Goods
Supply of Goods
Price of Goods
fromUS Bureau of Standards Survey of Current Business
The first seven indicators are used to give an indication of the state of interest rates. These do not all move at the same time, but in combination give a good indication of the state of this aspect of the economy.
The eighth Indicator, Velocity of Money, defined as the ratio of personal Income to the money supply, M2 acts like a broad interest rate since it relates the demand for money to the supply of money. This is the same aspect of the economy measured by interest rates.
There is no direct measure for this quantity. However capacity utilization is a goad indirect measure of supply of goods. Capacity Utilization (CU) is the ratio of capacity used in production to total available capacity.
If CU is high then the supply of goods available to meet new demand is low.
Conversely, if CU is low then the supply of goods to meet newdemand is high.
These are listed as SCB 82 and SCB 84.
Primary Trend Analysis
Characteristics and Guidelines
Stock Market Profile (SMP)