Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

Analysis of the Business Cycle - Essay Example

Comments (0) Cite this document
Running Head: Business Cycle Customer Insert His/her name: University name: Topic: Analysis of the Business Cycle: In order to determine the phase of business cycle in which the United States Economy stands today an analysis of its GDP growth rate, unemployment rate and inflation rate is necessary…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92.7% of users find it useful
Analysis of the Business Cycle
Read TextPreview

Extract of sample "Analysis of the Business Cycle"

Download file to see previous pages The United States unemployment rate in May 2011 was 9.1 percent slightly higher than that of April 2011 which was 9 percent. Employment rates in government sectors continued to decline while job opportunities were generated in private sector, health care and mining. The number of unemployed person in May 2011 was 13.9 million. Inflation rate in United States has a continuously rising trend. It has systematically increased from 1.6 percent in January 2011 to 3.13 percent in June 2011. While in April and may it sustained on 3.2 percent. United States economy growth rate has greatly decelerated since last few years the above analyzed data shows that United States economy is in a phase of slow recovery with its 3.3 percent GDP growth rate. There had been fluctuations in inflation and unemployment rate- slight increases and decreases and some times the rate sustained at one level. The growth rate here is very slow and it is insufficient for the recovery of United States economy. With the same growth rate it can be projected that the recovery of the economy will speed up in 2015. By bringing down the inflation and unemployment rate and increasing the GDP growth rate United States can fasten up its recovery stage. There had been high rising trends in United States GDP growth rate. It was the highest in the year 1990 with an amazing growth rate of 10.5 percent. A monopolistic firm has to analyze the GDP growth rate, inflation rate and unemployment rate of the economy very carefully as these aspects can have a direct effect on its labor cost and sales rate. As we can see a rising trend in GDP growth it shows that the whole economy is in function and there is an increase in aggregate demand which in turn increases the inflation by demand pull and cost push. At this stage a competitive monopolistic firm must increase its sales as there is a huge amount of money facing a little amount of goods. An increase in sales can occur when the GDP growth rate is increasing along with the inflation rate. But when there is a negative trend of gross domestic product a monopolistic firm may face a reduction in its sales rate. Because the economy is functioning in a slow manner the aggregate demand decreases and therefore the firms have to cut down their sales in order to avoid losses. The functioning of a competitive monopolistic firm here would be that it would increase its sales because the data shows an increase in GDP growth rate from 1.8 percent to 3.3 percent which in turn has increased the inflation rate as well from 1.6 percent to 3.13 percent. The monopolistic firm should also cut down its labor cost very cautiously. The wages cost is comparatively lower when the unemployment rate is low and it is slightly higher when the unemployment rate is high. Here the unemployment rate is increasing, as it was 9 percent in April and 9.1 percent in May and the monopolistic firm can cut down its cost but the firms should keep in concern that the labor or wage cost increases with the increase in GDP. If the firm will not keep an eye on increasing GDP rate and will cut down its cost to the minimum limit then a competitive firm will become uncompetitive because when the economy picks up and the Gross Domestic Product rises the increase in labor or wage cost may faster than the increase in sales of the firm. Under the present circumstances the firm can cut down its cost slightly and should keep a precautious look on GDP growth rate and unemploy ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Analysis of the Business Cycle Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Retrieved from
(Analysis of the Business Cycle Essay Example | Topics and Well Written Essays - 1000 Words)
“Analysis of the Business Cycle Essay Example | Topics and Well Written Essays - 1000 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Analysis of the Business Cycle

Internal and External Environmental Analysis for the Bakery Business

Liberalization of foreign investment and technology policy of the government is supportive of establishing industrial units in the country.

Threat: The UK food regulatory authority is planning to enforce the EC Regulations relating to food labeling. The labeling requirements under the new regulations will affect the food industry as the suppliers will be legally obliged to disclose the GM content of foods to the caterers. Thus business firms in the bakery industry also will be effected through the exclusion of flexible manner of labeling arrangements in the case of flour confectionery involving GM Soya or maize. (Genetically modified and novel foods (labeling) (England) regulations, 2000).

Trend: The new subs...
6 Pages(1500 words)Case Study

The Necessity of Job Analysis

... Lecturer: presented: Job Design Job design is an arrangement of procedures and organization of work which indicates the techniques and the interactions which are put in place in order to suit the technical and managerial requirements while on the other hand to satisfy the individual needs of the employees. It highlights the occupation structure, the duties of the workers as well as guidelines regarding the information which the worker is supposed to access. The importance of job analysis in human resources is to help the management to ascertain and endorse the usefulness of certain activities which take place in employment such as employment procedures such as training, choice of the appropriate employees, reparation as well...
7 Pages(1750 words)Coursework

The Management, Leadership and Teamwork Competencies Required by a Small Business Owner

On the other hand organizational leadership is defined as the ability based on the specific skill of an individual to lead his/her subordinates in a manner that pre-planned organizational goals could be achieved within the defined time-frame.

According to Burns (1978) and Bass (1985), transformational leadership has a set of category constructs such as values, morals, farsightedness, long term goals, principles, acute awareness about the dividing line between causes and symptoms, mission statements, strategic perspectives, and human resources. Similarly, they identify a set of category constructs in the transactional leadership also. For instance concentration on the task at hand, short term goals and tactics, confusion co...
6 Pages(1500 words)Coursework

Comparative Family Analysis

The second component of this essay will be a comparative analysis with the American family to the Arab family, generally speaking, but also clearly described by Homa Hoodfar, in her book Between Marriage and the Market. This essay will discuss the impact of globalization on different types of families in different societies and cultures. The terms ‘traditional’, ‘modern’ and ‘postmodern’ will be defined, elaborated upon and discussed on a continuum of change. Social change, in the face of globalization, will be discussed in relation to how cultures and families have grown or resisted the forces of globalization. We now turn to an exploration of the types of families in the world and follow...
6 Pages(1500 words)Coursework

Economic Analysis of India

The country’s economy is fast growing with a stable political system that encourages foreign investment although with certain restrictions. The country generally has good energy, transport and communication systems which make the cost of doing business affordably.

The Republic of India found South of Asia is by far the world’s most populous democracy and ranks seventh largest in terms of geographical area (Brown, 1994). India is also the second most highly populated country in the world. The country has a rich culture with four major religions having originally emerged from it; Sikhism, Buddhism, Hinduism, and Jainism. The Indian Republic consists of seven union territories and 28 states and ranks twelfth la...
8 Pages(2000 words)Case Study

Business Plan Real Estate Agency

re representing our company as their business consultants and our responsibilities are limited to the knowledge of the client’s business and information provided by the client.
The company Of-Fit has been operating as office supplies and equipment supplier since 1998. Their corporate office is in Aberdeen and it has excellent industry relations. The company is a sole proprietorship and its owner is Mr. Andrew Schwatz who has been working in the industry for more than 20 years. The company current staff is 8 and its revenues are £115,690 and £156,178 in 2008. The company aims to expand its operations in other business areas and regions of the UK.
The detailed business plan developed for this report incor...
12 Pages(3000 words)Business Plan

Business Sustainability and Society: Coca-Cola Company

... that business ethics has now become a component limited to theoretical policies and frameworks of business organizations, and such principles and ideologies although enable an organization to acquire income in a fair manner, however, it is now fading gradually from the business sectors. Brief analysis (Chadwick & Schroeder, pp. 11-18, 2002) has indicated that a set of ethical principles exist in almost every business organization globally; however, executives are not ensuring its implementation on ground reality level. For such reason, a number of researchers (Crane, pp. 43-48, 2007) are putting efforts to analyze different practices of business organizations in light of ethical theories and frameworks that has become a major concern...
10 Pages(2500 words)Case Study

Analysis of Educational Website

... Analysis of Educational Website Introduction Since antiquity, education remained a major component of human societies; however, until few decades ago, it existed in the society in its traditional and conventional form that involved one-to-one interaction of teachers with their students in classrooms. Since few years, educators and scholars have witnessed rapid advancements in the field of information and technology that has altered almost every sector of the society in a rapid manner, and so the education sector as well. In such advancements, internet has now become one of the most popular platforms for students, teachers, businesspersons, and individuals from every sector to acquire education and information within few clicks and minutes...
7 Pages(1750 words)Article

International Business: World Economic Forum and Davos 2010

...Introduction Globalization, one of the most hotly debated issues means global capitalism to some while others consider it to be the continuation of modernism with the forces of wealth, progress, democracy and happiness at play (Kellner, 2002). Globalization is considered to be beneficial which promotes economic prosperity, cultural diversity and technological advancement. According to the critical social theory, technology and capital work together to create a new globalized and interconnected world. While each force of globalization is important, technological revolution has impacted the business models, value creation and differentiation (Spelman, 2010). The cloud computing technologies that have made the popular social networking...
7 Pages(1750 words)Coursework

Analysis of Articles about Climate Change

Can we imagine an Earth where there are no green mountains, no deep blue seas, and no living creatures? No. But a disaster of such magnitude and dimension is looming over Earth. Humans have identified this threat, defined it and given it a name, global warming. 

It was in the 1990s that the world began to hear serious warnings on global warming and climate change. The summary for policymakers prepared as part of the first assessment report by the Intergovernmental Panel on Climate Change was the first-ever in-depth study on this topic (Houghton, Jenkins and Ephirams, 1990). This report explored climate change and stumbled upon revolutionary revelations. This study announced in very clear terms that there is a natur...
6 Pages(1500 words)Literature review
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Analysis of the Business Cycle for FREE!

Contact Us