ShmoopTube

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And here's your shmoop du jour brought to you by the

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unemployment rate there was a guy in charge of tracking it but well he got [Man firing employee]

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laid off which is not a measure of economic performance and here the

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potential answers all right we got change with the increased decrease all [Answers appear]

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that stuff so we're talking about economic performance not performance in

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the 200 meter fly at the Olympics not the performance of your cars turbo [Smashed up car driving]

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engine and enough performance you know anywhere else but economic performance

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like how is money flowing and in this question we're being given four things [People riding a boat and money floating in river]

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that are about economic performance and one that isn't start with a and while

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we're at it include D well a change in unemployment rate whether cyclically

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adjusted or not is a direct result of different economies befalling whoever's [Man firing employee]

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getting fired meaning that stat is all about economic performance [Money blown away]

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so the answer ain't a or D...B) decrease in nominal GDP well that's a sad and

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totally economic performance-based statistic when GDP goes down it means

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less dough is changing hands and the economy is making a sucking sound. E) if [Person making dough]

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GDP goes up it means more dough is changing hands just like a decrease in

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nominal GDP this is an economic event money movement is dictating it so that [Cash falling from sky]

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leaves us just with C) a change in the discount rate well this is a number that

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a bunch of egghead economist in a room the 50 feet below the ground somewhere

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on the East Coast sit around and debate they try to figure out whether the [Women in a meeting in discussion]

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economy needs more juice or less for its early morning run setting the discount

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rate high means discounting money a lot that makes money cheap to borrow and [Women shake hands]

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kind of primes the pump and pushes people to transact it isn't however an

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economic performer alone it's more of a reactor to economic performance but you

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have to ask the eggheads for their rationale for when they make this number [Egg heads sitting around meeting table]

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high or low or maybe you want to be one of them

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day or maybe not [Egg head man with cracked head on the floor]

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