Introduction. Cindy Is Debating On Whether Or Not She Should

1253 WordsApr 12, 20176 Pages
Introduction Cindy is debating on whether or not she should open a business to sell and install solar panels for residential and business use. She believes that this business will help companies and consumers save money on bills every month, while having a positive impact on the environment. However, the business will require all of Cindy’s life savings, so she wants to be positive that it is a good economic investment in the current economic environment. This essay analyzes the current economy of the U.S., including: GDP, the business cycle, unemployment rate, inflation, monetary policy, interest rates, fiscal policy, international trade, and demographics and provides a recommendation for Cindy. GDP Growth Rate The gross domestic…show more content…
The two main cycles are either expansion or recession. The U.S. is currently in a cycle of expansion. The economy continues to grow, the unemployment rate continues to drop, and wage growth is accelerating. According to Fidelity (2017), consumer spending should continue to be strong in 2017, with growing wages. Odds of recession should remain low throughout the year (Fidelity, 2017). This is good news for Cindy. The best time to start up a new business is during a cycle of growth. The unemployment rate is currently 4.5%, which is the lowest in almost 10 years. Many new jobs are being added every month, with 219,000 jobs added in February, and 98,000 added in March. The unemployment rate indicates that the labor market is returning to a sustainable pace of progress (Jamrisko, 2017). Employment is currently healthy in the U.S. This is also good news for Cindy. This indicates that there are more people working, earning, and having disposable income to invest in solar panels. According to the US Inflation Calculator (2017), the current inflation rate is 2.7% as of February 28, 2017. This is the rate at which consumer goods rise in price per year. An inflation rate between two and three percent is beneficial for an economy because it encourage consumers to buy and borrow more. This means that the government and central banks strive to meet a limited level of inflation (The Economic Times, 2017). The consistent inflation rate is positive

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