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Economic indicators are a valuable resource in making sense of the complicated and expansive economy. When used correctly, they help predict movement in financial markets.
Economic indicators are also interconnected. For example, when consumer confidence is high, spending on cars and housing increases. Companies respond by hiring more workers and increasing production to match demand. Gross Domestic Product grows while unemployment shrinks. This results in higher profits and, in turn, the financial markets improve. Of course the opposite scenario is also true. Definitions for some concepts follow each section in blue font.
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