ChapterOneEconomicBasicsIKeywordsGroupA----economiceconomyeconomistmarketeconomyproduce/production/producermanufactureoutputproductioncapacityproductgoodscostcapitallaborstockindustrysectorimportexportretailwholesalesurplus/deficitbudgetsupply/demandprofit(margin)returnrevenueearningsgainrecessioninflationdeflationboomslowdownrecover/recoverydownturnoverheatconsumerconsumptionhouseholdconsumerspendingconsumerconfidencesurveyfigurepollstatisticsunemploymentratelayoffcapitalmarketmoneymarketemergingmarketforecastexpect/expectationpredict/predictionprospectoutlooksignsignalconcernmeasurequarterfiscalyearannualfinancialyearoverthesameperiodlastyearcomparedwiththesameperiodoflastyearyearonyearforthe5thstraightmonthforthefifthconsecutivemonthinthefirsttwomonthsoftheyearslideslipsurgetumbleshrinkjumpslumpraisesoardropfalldeclinehikeexceedpromptcurbpromoteboostdriveincludeexcludetriggertightenloosensetatargetoilfuelrawmaterialsautomobileenergyGroupB---pessimist/pessimism/pessimisticoptimist/optimism/optimisticbuoyant/sluggishstrengthweakenworsenquickenacceleratedeteriorateestimatestimulusincentivesmaintainsustainreleaseacquisitionmergerbillion/trillionmarketshareindicatevolumeoverheatreleaseitemproductivitylaunchefficient/efficiencyassettemporarydevelopingeconomydomesticII.NewsReading.(A)ChinaPartlyLiftsVeilonGDPDataTheWallStreetJournalApril16,2011ByTOMORLIKBEIJING—China'spublicationofanewkindofeconomicdatabringsitcloserinlinewiththewayothermajoreconomiesreportgrowth,butalsoexposescontinuingproblemswiththequalityofitsstatistics,analystssaid.TheheadlinefigurewhenChinareporteditseconomicdataforthefirstquarterofthisyearonFridaywasthe9.7%growthrateingrossdomesticproduct.Thatfigure,aswithallofChina'squarterlyGDPnumbersinthepast,comparedoutputinthereportperiodwithoutputinthesamethreemonthsoflastyear.ButtheNationalBureauofStatisticsonFridayalsopublished,forthefirsttime,dataonhoweconomicoutputcomparedwiththepreviousquarter.Thisquarter-on-quarternumber,whichisadjustedtoaccountforseasonaldifferencesandmultipliedaccordingtoacompoundgrowthformulatogivean"annualized"rate,ishowtheU.S.andmostothermajoreconomiesreporttheirquarterlyGDPdata.Bythismeasure,thestatisticsbureausaid,GDPinthefirstquartergrew2.1%,or8.7%onanannualizedbasisaccordingtoWallStreetJournalcalculations—significantlyslowerthantheyear-on-yearfigure—suggestingthecurrentmomentumoftheworld'ssecond-largesteconomyismarkedlyslowerthantheyear-on-yearfigureindicates.Bigeconomiesuseadjustedquarter-on-quarterdatabecausetheyprovideamorereal-timepictureofthecurrenttrajectoryofgrowth.Astatementonthebureau'swebsiteApril8said:"Year-on-yeardatadoesnotprovideup-to-dateinformationonchangesintheeconomy.…Thedevelopmentofquarter-on-quarterindicatorswillmakeupforthatshortcomingandprovidebetterinformationtopolicymakersandanalysts."EconomistswhowatchChinagenerallyagreethatthemoverepresentsprogress.Buttheprogressislimited,becausethestatisticsbureaufailedtopublishanyhistoricaldataforthequarterlymeasure—whichisimportantforunderstandingwherethecurrentnumberfitsintopasttrends.ArthurKroeber,managingdirectorofBeijing-basedresearchfirmDragonomics,said,"Therevisionsaimtocreateaseriesthathasacloserrelationtoreality,butthefailureoftheNBStoproducecomparablehistoricaldata,ortoclearlyexplaintheirmethodology,detractfromprogressthatismade."Thestatisticsbureaudidn...
