Economic News You Can Use:
The news links below are updated continuously throughout the week to provide current economic news that you can use in the classroom to illustrate key economic principles.

Real Disposable Personal Income Down In October (11/30)
"Real disposable personal income , income adjusted for inflation and taxes, decreased 0.1 percent in October, the first decline since May.” Discuss how higher prices or inflation may impact wage growth and consumer spending in the coming months (Analysis). Discern if real disposal personal income has been increasing or decreasing during the past months (Trend). Examine if there is a relationship between personal disposal income and spending (Relationship). Examine why personal spending or consumption expenditure is critical to the overall US economic performance (PCE)?

Q3 Economic Growth Fastest In Four Years, Revision Shows (11/29)
"The economy grew at an annual rate of 4.9 percent in the third quarter, compared with 3.8 percent in the second, according to the “preliminary” estimates released by the Bureau of Economic Analysis.” Discuss how the U.S. economy performed during the 3 rd quarter even as the housing market plunged into turmoil and credit problems intensified (Analysis). Assess how well the U.S. performed relative to other economies around the world (Comparison). What is the official Whitehouse forecast for the U.S. economic performance in the coming years (Forecast)?

Holiday Shopping Season Starts With A Bang (11/24)
"While economists have been prognosticating holiday sales Armageddon, ShopperTrak RCT Corporation's National Retail Sales Estimate (NRSE) today reported that the 2007 holiday retail season got off to a very strong start.” Discuss why many economists have been expecting a slow start to this year’s shopping season (Analysis). Identify what actions were taken by retailers to successfully entice “shoppers out of bed on a chilly day” (Actions). Review the National Accounts sector data and assess how important retail sales or personal consumption expenditures are to the overall well being of the economy (National Accounts).

Euro Is Becoming The It Currency (11/23)
"Despite squeals of pain from European exporters, the strength of the euro is fast propelling Europe's single currency into a juggernaut.” Examine how far the U.S. dollar has fallen relative to major currencies around the world (Graph). How is the deficit in the U.S. current-account balance may be affecting the dollar’s value (Deficit)? How is the deficit compare with other economies (Comparison)? Assess which currencies are over or under-valued relative to the dollar (Big Mac). How is the current value of dollar may be affecting the U.S. trade balance and perhaps, help to restore the current-account balance (Balance).

Fed Plans More-Detailed Forecasts More Often (11/14)
"The Federal Open Market Committee (FOMC) announced on Wednesday that, as part of its ongoing commitment to improve the accountability and public understanding of monetary policy making, it will increase the frequency....” Review the FOMC’s plan to offer more-detailed economic forecasts more often to the public. Find out why the Fed may have made this change (Speech). Discuss how more-detailed forecasts can be used as policy guides (Analysis) View an expert panel discussion on “what we have learned” about monetary stability, exchange rates and capital control (Panel #2).

Trade Deficit Narrows (11/09)
"The U.S. monthly goods and services deficit decreased in September 2007, according to the U.S. Bureau of Economic Analysis and the U.S. Census Bureau.” Assess how much the U.S. dollar has fallen in its relative value during the past year (Dollar). Discuss how a weaker dollar may help to narrow the trade deficit (Analysis). Examine if trade deficit with China has also narrowed (Deficit). See which currencies are still undervalued relative to the dollar (Big Mac).

Labor Productivity Up In 3Q (11/07)
"The Bureau of Labor Statistics of the U.S. Department of Labor today reported preliminary productivity data as measured by output per hour of all persons for the third quarter of 2007.” Discuss how rising productivity improves living standards while allowing the economy to expand faster with less inflationary pressure (Analysis). Assess how a dip in unit labor costs may give the Federal Reserve more “breathing room” as it debates interest rate policy (Unit Costs). Examine why inflation has been less of concern for the economy (Trend).

166k Jobs In October (11/02)
"Nonfarm payroll employment rose by 166,000 in October, and the unemployment rate was unchanged at 4.7 percent, the Bureau of Labor Statistics of the U.S. Department of Labor reported today.” Which sectors of the economy lost or gained jobs during the past month (Analysis)? Discuss why it is “difficult to reconcile” what the Nonfarm Payroll and Household Survey data seem be telling about the economy (Analysis)? Examine how the Labor Force Participation rate can affect the monthly Payroll and Unemployment measures (Participation).

Course Reading
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