EBIT A corporation's earnings before it pays bond interest and taxes. It is then used to conduct analyses on various economic situations. An econometric model, for example, might be used to show the relationship between consumer spending and unemployment rates. If the rate rises in two consecutive quarters, it is considered to indicate an expanding economy. If the rate drops in two consecutive quarters, it is considered to mean a recession.
Some indicators are the unemployment rate, inflation rate and balance of trade.
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