BC Journal

The Consumer Price Index (CPI) is a measure that tracks the changes in the price level of a basket of consumer goods and services over time. It is used as an indicator of inflation or deflation in an economy.

The CPI is calculated by selecting a representative sample of goods and services commonly purchased by households, such as food, housing, transportation, and medical care, and then measuring the price changes of these items over time.

The CPI is expressed as a percentage change from a base year, with the base year typically set to 100. A CPI value greater than 100 indicates that prices have increased relative to the base year, while a value less than 100 indicates that prices have decreased.

By tracking changes in the CPI, economists and policymakers can assess the rate of inflation or deflation and make adjustments to monetary policy or other economic measures as needed.

#CPI #indicator #inflation #deflation #consumer #economy

Gross Domestic Product (GDP) is a measure used to gauge the economic performance of a country. It represents the total monetary value of all goods and services produced within the borders of a country during a specific time period, typically annually or quarterly.

GDP encompasses the output of all sectors of the economy, including consumption, investment, government spending, and net exports (exports minus imports). It is one of the key indicators used by economists and policymakers to assess the overall health and growth of an economy.

#economy #GDP #monetaryvalue #indicator

The S&P 500, or Standard & Poor's 500, is a stock market index tracking 500 large-cap U.S. companies, reflecting the nation's economic health.

Managed by S&P Dow Jones Indices, it spans sectors like technology, healthcare, finance, and consumer goods, chosen based on market capitalization, liquidity, and stability. Its value is weighted by market capitalization, giving greater influence to higher-valued companies.

Widely seen as a barometer for the entire U.S. stock market, the S&P 500 is used by investors to assess portfolio performance and make investment decisions. It also serves as a basis for various financial products, including index funds and ETFs, which mimic its performance.

#stockmarket #index #largecap #marketcapitalization