How are some economic indicators calculated?
There are many economic indicators that are mathematically calculated, mainly in
order to understand a nation’s economic health. The gross domestic product (GDP) is
the current measure of a nation’s economic performance. It is the total market value
of all final goods and services produced in a country during any quarter or year. Its
calculation includes such variables as total consumer spending, business invest-
ments, government spending and investments, and the value of exports minus the
value of imports.
The consumer price index (CPI) is a measure of the average change over a period
of time of prices paid by consumers for a “market basket” of consumer goods and ser-
vices. (A market basket is based on information from a sampling of consumers on
their spending habits—what they “put in their basket.”)
There are also the M1 and M2 indicators. The M1 is a measure of the money sup-
ply—including currency in circulation, such as travelers checks, deposits, and check-
ing account balances—that can be spent immediately. M2 is the M1 plus assets that
are invested for the short term, such as certain overnight repurchase agreements,
savings deposits, time deposits (less than $100,000), and money market mutual
funds. There is also an M3 that relates to the big bucks from places such as lending
institutions.MATH IN MEDICINE AND LAW
What is mathematical medicine?
Mathematical medicine uses math to understand certain medical problems. For exam-
ple, some medical researchers are using noises and sounds from a patient’s lungs as a
diagnostic tool. Based on the quality of the sound—measured by ear or mathematical
analysis of a frequency spectrum—it may prove to be a noninvasive way of detecting
lung disease. Other examples are the mathematical modeling of how drugs are deliv-
ered through the body to target diseases and the mathematical modeling of the pro-
gression of age-related macular degeneration. Overall, mathematical modeling and
simulation techniques are the most important part of mathematical medicine, and
will likely be used in the future to help solve problems with the human body.What is epidemiology?
Epidemiology is a form of statistical study of the incidence, distribution, and reasons
for an infection, disease, or other health-related event that occurs in a population.
Using statistics, it asks such questions as “Who has the infection or disease?”; “Where
are they located geographically and in relation to each other?”; “When is the infection
392 or disease occurring?”; “What is the cause?”; and “Why did it occur?”