PI, a reliable measure of the current state of the economy, is used as a warning for inflation, deflation, and disinflation. The CPI generally increases every year because the standard of living rises through time.
             The unemployment rate is also significant in the fact that it measures the percent of the population that are currently not legally employed and are actively seeking employment. Recently, because of the strong, healthy US economy, the unemployment rate was the lowest in peacetime since 1957. Low unemployment correlates to a good economy but it can mean increasing inflation because the workers, who have been working as wages increased, can spend more and drive up prices. More jobs have become available because of economic growth including strong consumer confidence and low interest rates. Too low of an unemployment rate is bad because it will cause inflation due to the wealth effect, which means that people will get richer and richer until inflation sets in. According to the Phillips curve, it was widely believed that as unemployment decreases, inflation would increase. Recently, there has been an anomaly because this theory hasn't been true. This relationship has not been so prominent due to the recession in foreign markets. Recession in foreign markets can cause an increase in the unemployment rate because factories that export goods to other nations will have to cut down on production because people there cannot buy the products. Inflationary pressures caused the Fed to announce an expected rise in increase rates because of high CPI, but the unemployment rate remains almost fixed at 4.3 percent, which is still low, as well as being a factor in inflation.
             The GDP measures the dollar value of a nation's spending and output in goods and services. The GDP can increase when there are inflationary pressures, which meant that the economy is growing at an unhealthy rate. The GDP, if it has risen dramatically, means ...