Challenges Faced By The Management Of A Business

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“Managerial economics applies the principals and methods of economics to analyze problems faced by the management of a business, or other types of organizations and to help and to help find solutions that advance the best interests of such organizations.”(Managerial Economics, 2015). In order to apply the principals and methods of economics to business it is important to first understand general economic principles and macroeconomic indicators. These indicators help managers to understand how the economy is performing and what the trends are here in the U.S. and across the world. An article titled “Kiplinger’s Economic Outlook” presents a current look at general economic principles and economic indicators. The article offers a look at last year (2014) and uses the indicators to anticipate the economic performance for the U.S. in 2015 taking into account the political setting, legal issues, global economic pressures, and even climate change. The article discusses Gross Domestic Product (GDP), employment, Consumer Price Index (CPI), inflation and interest rates, Balance of Payments (BoP), and. major macroeconomic indicators for the U.S economy. The article also discusses economic principles including money, inflation, trade, supply and demand, and economic growth and how these will affect the economy in 2015. This article will allow the reader to enhance his or her understanding of macroeconomic indices, get an explanation of these indices using economic principles,

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