Business Macroeconomics - 1375 Words

Business Macro-Economics Question A: GDP 1. GDP is the market value of all goods and services produced within a country over a given period of time; it is primarily used to gauge a countrys economy and is also viewed as the size of the economy at a particular period of time. Moreover, GDP is a comparison made between the previous year and the current year to check the countrys economic growth over time. However, measuring GDP is complicated but at its most basic, its calculation is done by either adding up everyones yearly earnings or adding up what everyone spent; logically both measures lead to the same total (United States Bureau of Economic Analysis, 2009). The basic formula for calculating the GDP is; Y = C + I + E + G C =1000; I =200; E =300 and G =250 Y = 1000 + 200 + 300 + 250 = 1750 Y = 1750 2. Whenever a countrys exports exceed imports, then it will add to the GDP but if imports are more than the exports it subtracts from the GDP. More exports by a country increases the foreign income flow to the country which has the effect of increasing the GDP while elevated levels of imports increases the countrys foreign debts which has the effect of lowering the GDP. If we are able to increase our domestic energy production which allows us to import less oil from foreign countries, then it would positively impact the nations GDP. Question B: Inflation 1. Rising inflation and prices has the effect of increasing the inflation rate. Inflation isShow MoreRelatedMacroeconomic Variables Affecting a Business Environment2192 Words   |  9 PagesCHAPTER 1 QUESTION: IDENTIFY AND EXPLAIN TEN (10) MACROECONOMIC VARIABLES AFFECTING A NAMED BUSINESS ENVIRONMENT. HOW CAN THESE BE REGULATED? INTRODUCTION In todays world, no business operates in isolation without interacting with the environment where it operates. Irrespective of the nature of business whether public or private organization; manufacturing; service industry; local or international firm, its operations are inhibited by the environment in which it operates. During 2003-2007Read MoreMacroeconomic Impact on Business Operations1812 Words   |  8 PagesMacroeconomic Impact on ï ¿ ½ PAGE * MERGEFORMAT ï ¿ ½9ï ¿ ½ Running head: MACROECONOMIC IMPACT ON BUSINESS OPERATIONS Macroeconomic Impact on Business Operations University of Phoenixï ¿ ½ This paper will address the how the monetary policy has an impact on the factors of macroeconomics, such as gross domestic product (GDP), interest rates, inflation, and unemployment. According to the Federal Reserve, the Board of Governors of the Federal Reserve System and the Federal Open Market Committee shall maintainRead MoreMacroeconomics for Business Debt Sustainability1665 Words   |  7 PagesBS1780 Macroeconomics for Business Problem Set 3 Group Assignment February 2016 1ï ¼â€° Assuming that the nominal interest rate, the inflation rate, the real GDP growth and primary deficit remain constant for the next year, we can compute the projected next year end debt as a percentage of GDP by using the equation: dt+1=dt+i-Ï€dt-grdt-st+1 In this case, dt is the public debt (as % of GDP) of 2011, which is 88%; i is the government interest rate 7% according to our assumption;Read MoreEssay about Macroeconomic Impact on Business Operations666 Words   |  3 Pagesthey loan money, when a person needs a loan to improve an already opened business the bank will consider the ability of the establishment to repay the loan. If the loan is approved the bank then creates a checkable deposit which in turn creates more money, which is usually an electronic increase no money actually exchanges hands. Much of the money in our economy comes from credit of commercial banks. When the established business has repaid the loan to the bank then that money is destroyed, and theRead MoreFinance Is Based On Economics841 Words   |  4 Pagesneeds by humans. Macroeconomics started with John Maynard Keynes, an English economist, who published a book entitled General Theory of Employment, Interest and Money in 1936. Keynes offered a clari fication for the fallout from the Great Depression, when goods remained unsold and workers unemployed, a feat that left classical economists stumped. Keynes theory explained why markets may not clear. This theory evolved throughout the 20th century, diverting into several macroeconomic schools of thoughtRead MoreIntroduction And Literature Review : The Decline Of Economic Conditions881 Words   |  4 Pagesin U.S. economy. How do macroeconomic factors influence consumer confidence in different groups of people? I used data from Survey of Consumer Attitude and Behavior by University of Michigan, Survey Research Center and examine the relationship between the Index of Consumer Expectation and four categories of parameters: demographic variables, macroeconomic factors, news heard and their interactions to observe the interacting effect of demographic factors and macroeconomic factors. In Part 1, I introducedRead MoreThe Theory Of Macroeconomic Analysis Deals With Economic Aggregates1 229 Words   |  5 Pages The theory of macroeconomic analysis deals with economic aggregates. This theory is very critical and important in decision making by planning agents in the economy (Mankiw, 2010). Macroeconomics analysis is of great and paramount importance to the three entities that comprise of any economy who are the households, firms and the government institution. The households in the economy are majorly interested in the macroeconomic analysis to determine and know how a slight change in general priceRead MoreEcon 2301 Study Guide1079 Words   |  5 PagesECON 2301: Principles of Macroeconomics Hennessy ECON 2301 Principles of Macroeconomics Time: Th 7:05 pm – 9:45 pm Synonym: 40512 Section: 023 Room: NRG2 2120 Instructor: Gregory Hennessy Office: NRG PB3 Hours: Th 6:30 pm – 7:00 pm Th 9:45 pm – 10:15 pm And by appointment Phone: Email: 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 carriedRead MoreComparative Analysis Of Chinese And Greece Financial Crises Essay843 Words   |  4 PagesFINANCIAL CRISES The failure of macroeconomic factors largely resulted in the financial calamities for both China and European nations such as Greece. These included foreign exchange and interest rate fluctuations and output as mentioned in Haile and Pozo, (cited in Shen et al, 2015, p. 193). Furthermore, the interdependence between China and European nations as trading partners suffered throughout the crisis given the disruption to the aforementioned macroeconomic variables, (Shen et al, 2015, pRead MoreFinal Project Part I Milestone One: Supply, Demand, and Market Equilibrium855 Words   |  4 Pageschanges in the industry’s market structure impact your chosen company’s business strategy in the future? Keep your company’s current business strategy in mind in your response. This information should be incorporated with the overview (Section I) along with the content from Milestones One and Two, reflecting the incorporation of feedback gained throughout the course. 8-1 Final Project Part II Milestone: Overview and Macroeconomic Variables This milestone, which covers Sections I and II of Final Project