Assume that stock markets are beginning to rise, the number of hours worked each week is going up,?

Question

...  and there is an increase in the number of new building permits. What would these indicators say about the economy?

Answer

They might mean something and they might mean nothing. Economics is intimately associated with politics, and politics is largely theater. The term "potemkin village" refers to houses and stores built to give an impression of a strong economy when no such economy exists. In USA the employment statistics and cost of living indexes (there are many) serve the same purpose.

The most important thing for you to learn in economics is not what indicators mean, it is whether the indicators are lying. 

Learn about honest economics at fee.org and mises.org

Assume that stock markets are beginning to rise, the number of hours worked each week is going up,?

Answers (1)