“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,
In our team paper, we are going to evaluate, assess, and apply various economic situations from a Keynesian and Classical perspective. As the global markets increase and decrease over time careful modifications of the economy of the United States need to be made. After a comprehensive assessment of the current economic situation team C has agreed, that the Current State of Interest Rates, unemployment, exceptions, and consumer incomes and spending are the distinct factors that have an influence on economic forecasting and growth. The US is still recovering from the financial crisis there is still some skepticism, despite recent signs in
In the Book, Pop, Why bubbles are Great for the Economy by Daniel Gross, there is an explanation of why people today do not understand the agitations and turmoil that create barriers to improving the economy. The ideas that economist hope to see in the world, are very farfetched from actuality. This world that they think of is a dream that is practically perfect in the way of allocating resources and making sure everything is done in the best possible way. However, people cannot all see the bigger picture and have faith that it will be what is good for the economy. Instead, our economy is centered over a few main points which are self-indulgence, entrepreneurship, and sometimes this can cause mayhem within the economy. Daniel explains how Americans handle our economy growing and new things coming to the public’s eye as if losing their marbles and everything crumbles from there. The book discusses different time periods that bubbles got out of hand and because of that people were hurt financially. People got hurt because the prices of different markets rose when the economy was not ready for it to raise. The different industries that the book exhibits are telegraphs, railroads, the internet, real estate, and alternative energy.
economy continues to improve (Neal E. Boudette, Jan. 2014). So far, pricing in the U.S. market has been trending upward, not falling. The “discipline” of major competitors has thus far helped in matching production to demand.
Course Description Principles of Macroeconomics deals with consumers as a whole, producers as a whole, the effects of government spending and taxation policies, and the effects of the monetary policy carried out by the Federal Reserve Bank. Macroeconomics is concerned with unemployment, inflation, and the business cycle. Text Required: Macroeconomics, Roger A. Arnold, 7th Edition, 2005 Recommended: Macroeconomics Study Guide, Roger A. Arnold, 7th
A nation’s economy plays a vital role in how a nation operates. The United States economy faces a large variety of problems in this paper; we will focus on 4 major economic problems, unemployment, inequality, federal debt, and the financial/credit market. All four issues are interconnected in some way with deep social and economic implications. These issues were emphasized during the Great Recession that hit the U.S. economy in 2007.In the following paper, we will look at each of the four topics individually as well as look at how each plays a significant role in one another’s overall impact on the U.S. economy as well as individuals in the United States. The United States plays a crucial role in the world economy, meaning that every issue and difficulty faced the United States economy has implications far outside the U.S., understanding how these issues relate to one another sheds insight into just how connected every area of the economy actually is.
As the newly appointed President of the local Chamber of Commerce, I will make a presentation of the trends, statistics and forecasts of the U.S Gross Domestic Product to give the business leaders an idea of what is the outlook of our economy. Based on the economic statistics from the Bureau of Economic Analysis (BEA) among other sources, I will provide a detailed up-to-date image of the United States economy.
To fulfill this purpose, America's Blueprint: Great Recession 2.0 analyzes the cross-sector macroeconomic drivers and challenges of the changing global economic landscape the United States faces today. For the past sixty-five years, the United States rejected numerous opportunities to take corrective actions to prevent what we call the Great Recession 2.0. Our analysis indicates the United States and the global economy as a whole will face trying times as early as the third-week of September
Reduction in real exports (real imports, which are a subtracted in the GDP calculation declined as well), accounted for a significant portion of the economic decline, followed by a decrease in inventory investments, non residential fixed investments, residential investments and a cutback in state and local government spending. The GDP 's only supporter so far this year came in the form of increased real personal consumer expenditures, which grew from 2.1 percent from the previous estimate of 2.0 percent, mainly reflecting sharp increases in services and slight increases in other areas. The BEA states, "The downturn in the percent change in real GDP, primarily reflected a downturn in exports, a larger decrease in private inventory investment, and downturns in nonresidential fixed investment and in state and local government spending that were partly offset by an upturn in federal government spending" (2014). The table below, prepared by the BEA, shows precisely which components of GDP rose and tumbled in Q1 2014.
There are many of us out there that constantly ask ourselves, “how exactly does the U.S. economy work?” During an inflation we might conclude that we have an Economic problem, on the other hand, if we have a huge increase of jobs; we might then conclude that as an economy we are doing a good job. There are many factors that one needs to consider in order to come to a conclusion on whether we are doing a good or bad job in the economy. I will be touching base on some of the various microeconomics tools that we can use to describe the changes in supply or demand. I will also be discussing the history behind this material and the governments involvement behind this process. We all use the laws of supply
In a recently released report entitled GDP Declines Slightly in Fourth Quarter, the United States Department of Commerce and the Bureau of Economic Analysis (BEA) examine recent data trends to provide a detailed advance estimate of the nation's gross domestic product (GDP). A pair of informative graphs is also included within this comprehensive review, with the first illustrating the quarterly growth in real GDP since 2009, and the second depicting annual real GDP growth over the same period of time. Released on January 30th, 2013, the BEA's most recent GDP forecast concludes that real GDP decreased by a rate of 0.1 percent during the fourth quarter of 2012, after a relatively encouraging increase of 3.1 percent during the preceding quarter (Bureau of Economic Analysis, 2013). Among the notable economic trends observed by the BEA in its latest report is a downturn in inventory investment by manufacturing industries, as major retailers struggle to cope with dampened consumer confidence during the prolonged recession (2013) The BEA also finds that government spending was curtailed dramatically, reflecting the Obama administration's commitment to reduce superfluous funding for the defense department.
The main contributing cause for the decline in economic growth over this year is the huge reduction in business and consumer investment. After analyzing the GDP growth rate over the past three quarters of 2016, it is shown that there have been steady increases in consumer consumption, government spending, and net exports, subsequently in both exports and imports. The only factor of the GDP equation that is holding the economic growth rate in the U.S. down in the lack of business and consumer investment. GDP can be calculated using the following equation of, GDP = Consumption (C) + Investment (I) + Government Spending
The United States is the leading economy across the globe and experienced several tribulations in the recent past following the 2008 global recession. Despite these recent challenges, there are expectations among policymakers and financial experts that the country will experience solid economic growth. Actually, financial analysts have stated that the U.S. economy will be characterized by increased consumer spending, increased investments by businesses, reduced rate of unemployment, and reduction in government cut. Some analysts have also stated that the country’s economy will strengthen in 2014 with an average of 2.7 percent or more. However, these predictions can only be understood through an analysis of the current macroeconomic
It is essential to the well-being of Americans that we maintain our economy’s competitive edge in this day and age. In the 21st century, nations around the globe compete with one another in the economic battle with high level of concentration and intensity.
America has made mistakes before, now the country plans out their economy’s future a little more. One of the top five largest economies in the world, the United States, promises for new laws regulating and decreasing in tax burdens in United States’ markets. Americans can expect to see a faster growth than previous years, and according to Forbes article The U.S. Economy In 2017: Welcome Higher Growth, “the U.S. economy will be a key driving force of other Western economies” (Chafuen 1). Especially now with the new president, Trump, he has already made the US more appealing and put a rise in stocks by electing certain cabinet members. This shows the world taking Trump 's approach seriously. The unemployment rate influences the economy. At
The year 2017 seems to be one setting in significant changes both in the political and economic scenes. Every other person who has even the slightest interest in current global trends understands that these two issues relate to each other at a very high level. The political atmosphere in the United States is known to greatly affect not only the local, but also the world economy. With a new president taking seat this year, the economic ripple effect will undoubtedly not go unnoticed. To add more significance to this is that the new president (Donald Trump) is by far an economist, greatly contrasting the nation’s history