Economics

Brianna Sexton

Ian Griffith

Max Morrow

Garrett Santoline

Michael Rabb

Introduction to Economics

• Although it has often been referred to as the

dismal science, the study of both macroeconomics

and microeconomics plays a major role in our day-

to-day lives.

• “It ain’t what you don’t know that will hurt you; it’s

what you know that ain’t so.”

-Mark Twain

Introduction to Economics

Inflation

• Inflation is the general measure of how much

prices go up each year.

• Inflation can be calculated mathematically using

the annual Consumer Price Index (CPI) Model.

Inflation

• Although inflation typically has a bad reputation, it

is, in several instances, instrumental to the overall

health of the economy.

Economic Stress Tests

• Stress tests provide a unique view of what could

potentially occur in the economy as the result of

some sort of government interaction.

• The Federal Reserve System often uses

hyperinflation as a means to test the strength of

the macro economy.

Economic Stress Tests

• It can also be implemented by corporations to

visualize the effects of fiscal and monetary policy.

Econometrics

• Econometrics is the applied statistics used to

provide an empirical approach on economic data.

• It uses a plethora of mathematical applications

including calculus to cluster statistical data.

Econometrics

Economic Business Cycle

• The business cycle is a graphical measure of the

sideways trends of the economy.

• It is measured from peak to peak or trough to

trough

• It is often times used in analysis for the Global

Industry Classification Standard by portfolio

managers.

Econometric Business Cycle

• It shows historical trends of economic contractions

and expansions and is a broad indicator for future

economic trends as well.