  Through this paper, an attempt has been made to quantify the underlying
relationships between the leading macroeconomic indicators. More clearly, an
effort has been made in this paper to assess the cointegrating relationships
and examine the error correction behavior revealed by macroeconomic variables
using econometric techniques that were initially developed by Engle and Granger
(1987), and further explored by various succeeding papers, with the latest
being Tu and Yi (2017). Gross Domestic Product, Discount Rate, Consumer Price
Index and population of U.S are representatives of the economy that have been
used in this study to analyze the relationships between economic indicators and
understand how an adverse change in one of these variables might have
ramifications on the others. This is performed to corroborate and guide the
belief that a policy maker with specified intentions cannot ignore the
spillover effects caused by implementation of a certain policy.
