...Current Macroeconomic Situation in US and Prospects for Automotive Sector The U.S. automobile industry is large and dynamic sector contributing significantly to the nation’s output and employment. Auto industry provides the basis for a mass of related service and support industries. The industry is highly volatile and sensitive to global and domestic economic changes. During the 1960’s & 1970’s the big three accounted for 90% of automobiles purchased in U.S. However, since 1980’s foreign manufacturers entered the U.S market. So, the industry faced intensive competition from Japan, Germany & other countries. During 1998’s availability of foreign substitutes flooded the U.S automotive industry. Foreign producers, particularly Japanese, provided solitary competition to The U.S. oligopoly. Besides, the demand for automotives are highly found to be fickle and sensitive to macroeconomic conditions like, income, unemployment, interest rate etc. Regarding cost of production, The U.S automotive firms are characterized by huge fixed and variable costs. The variable cost in terms of wages and other benefits are, because most of the automobile firms like GM, Ford, and Chrysler have long been unionized. The United Auto Workers (UAW) ensures higher wages and generous benefits in the form of health insurance and Medicare for automotive industry workers than in any other non unionized firm. Eventually, UAW contracts with the auto firms lead to mounting variable and fixed cost...
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...us/question_des/ALLASSIGNMENTSWEEK3PLUSWEEK6/1887 contact us at: help@mindblows.us ECON 312 ALL ASSIGNMENTS WEEK 3 PLUS WEEK 6 Week 3 Assignment; Anti-Trust Case Week 6 Assignment; Current Macroeconomic Situation in the U.S ALL ASSIGNMENTS WEEK 3 PLUS WEEK 6 To purchase this tutorial visit here: http://mindsblow.us/question_des/ALLASSIGNMENTSWEEK3PLUSWEEK6/1887 contact us at: help@mindblows.us ECON 312 ALL ASSIGNMENTS WEEK 3 PLUS WEEK 6 Week 3 Assignment; Anti-Trust Case Week 6 Assignment; Current Macroeconomic Situation in the U.S ALL ASSIGNMENTS WEEK 3 PLUS WEEK 6 To purchase this tutorial visit here: http://mindsblow.us/question_des/ALLASSIGNMENTSWEEK3PLUSWEEK6/1887 contact us at: help@mindblows.us ECON 312 ALL ASSIGNMENTS WEEK 3 PLUS WEEK 6 Week 3 Assignment; Anti-Trust Case Week 6 Assignment; Current Macroeconomic Situation in the U.S ALL ASSIGNMENTS WEEK 3 PLUS WEEK 6 To purchase this tutorial visit here: http://mindsblow.us/question_des/ALLASSIGNMENTSWEEK3PLUSWEEK6/1887 contact us at: help@mindblows.us ECON 312 ALL ASSIGNMENTS WEEK 3 PLUS WEEK 6 Week 3 Assignment; Anti-Trust Case Week 6 Assignment; Current Macroeconomic Situation in the U.S ALL ASSIGNMENTS WEEK 3 PLUS WEEK 6 To purchase this tutorial visit here: http://mindsblow.us/question_des/ALLASSIGNMENTSWEEK3PLUSWEEK6/1887 contact us at: help@mindblows.us ECON 312 ALL ASSIGNMENTS WEEK 3 PLUS WEEK 6 Week 3 Assignment; Anti-Trust Case Week 6 Assignment; Current Macroeconomic Situation in the U.S ALL ASSIGNMENTS...
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...The Current Macroeconomics Situation Recession and Depression Jennifer Pearson pearson.jennifer40@yahoo.com The Current Macroeconomic Situation Today the current macroeconomic situation in the US is troublesome abroad. The unemployment rate is 7.5% of June 2013; so the average rate ahead is about 5.7%. Instead, the inflationary rate is approximately 2.3% that is 5% less than the past average rate of 2.28%. However, the data shows the dollar buys less and less each passing day. As stated in the Trading Times, ‘’ The Gross Domestic Product (GDP) in the United States expanded 2 percent in the third quarter of 2011 over the previous quarter. I think the government need to utilize an expansionary fiscal policy, by using the money to increase the liquidity in the system. As a matter of fact, always take precaution not to over-do it because there is so much money out there that will make the dollar invaluable. Today’s current downward trend for interest rates should help tighten the economy; instead securities are hard to come by and lowering the interest rate may have minimum effect on small businesses that need capital can’t obtain a loan from a borrower. The Current Macroeconomic Situation in the United States The Federal Open Market Committee (FOMC) discussed in October 2012, that it was verified the unemployment rate seems to be declining. It was also verified that American households spending has risen slowly, but the unemployment rate seems to be...
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... April 14, 2010 Week 6 Assignment Introduction The current macroeconomic situation has been an issue of many talks in the United States and worldwide. Everyone is trying to change the situation, but no definite answer has been found. 1] What is the “current macroeconomic situation” (e.g worrying about inflation and/or recession) in the U.S.? The macroeconomic situation in the United States is not stable due to the financial instability, especially in the macroeconomic arena, because imports and exports are really down. The case for macroeconomic policy stimulus has been stronger in the United States than in Europe or Japan and both US monetary and fiscal policy have already acted forcefully. Going forward, the scope for policy support to decelerating activity depends on inflation developments. Soaring oil, food and other commodity prices have led to a sustained pickup in headline inflation rates and increases in producer price inflation suggest further impending cost pressures. In these circumstances, a ratcheting up of inflation expectations remains a potent threat. Another contributing factor is the devaluation of the dollar and other currency, such as the Euro or yen. Inflation has eroded the prices of commodities and goods, and the threat of possible recession has also contributed to the problem. This can be avoided by issuing anti inflationary measure to protect further damage in the macroeconomic world. 2] What...
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...Macroeconomics Jennifer Swanson Professor Hector Morales 12/09/2012 Macroeconomics……………………….………………….………………………... page 3 Conclusion………………………………………………………………………....... page 4 References………………………………………………………………………....... page 5 Macroeconomics The macroeconomic situations in the United States are worrisome, as is the rest of the world. Unemployment is at a steady high, there’s a staggering inflation and the recession continues to effect people after so many years. The 2008 Financial Crisis had a more detrimental impact on advanced economies like the US than on developing economies like China and India, leading to wider projected disparities between the future GDP growth rates of the advanced and developing economies. According to Trading Economics, “The Gross Domestic Product (GDP) in the United States expanded 2.70 percent in the third quarter of 2012 over the previous quarter. Historically, from 1947 until 2012, the United States GDP Growth Rate averaged 3.2 Percent reaching an all-time high of 17.2 Percent in March of 1950 and a record low of -10.4 Percent in March of 1958.Unemployment Rate in the United States decreased to 7.70 percent in November of 2012 from 7.90 percent in October of 2012”. The recovery of the US job market has not taken off as many had expected and recently the economy added a disappointing number of available jobs. With the lack of jobs, unemployment rates continue to be an issue. The economy has lost more jobs...
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...1. Introduction Macroeconomics studies the behavior of the overall economy. Macroeconomics examines economy-wide phenomena such as changes in unemployment, national income, growth rate, gross domestic product, and inflation and price levels. Research has proved that the main economic factors that affect aggregate demand are economic growth, real income, interest rates and consumer confidence. This assignment will discuss current macroeconomic conditions in the US and how these conditions have affected two monopolistically competitive firms, McDonald’s and Verizon. This paper will explore how the two companies responded to the macroeconomic conditions in terms of their stock performance, current and future sales revenue, current and future products, labor costs and hiring decisions. 1.1 The Current Economic Conditions The current macroeconomic situation is fragile. The US economy is clearly in terrible shape, but what is unclear is how we got there. Many experts trace the origins of the current economic situation to the housing bubble that came about earlier this decade (Tanneeru, M). According to the estimate, the real GDP of the US increased .25 of 1 percent over its level in the 1st quarter of 2011. The growth rate of the economy is still volatile and while any increases in real GDP are welcome, they are not sufficient to reduce the unemployment pool (Watkins, T, 2011). 1.2 McDonald’s and Verizon McDonald’s Corporation franchises and operates McDonald’s restaurants...
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...Current Macroeconomic Situation, Fiscal and Monetary Policies Current Macroeconomic Situation, Fiscal and Monetary Policies Introduction As the leading world economy, the United States and has been in a recession since 2008 and the leading outcome of this recession has been no other than unemployment. The newsflash among media and television about this recession has resulted in unemployment, and how to remedy this “current macroeconomic situation”. No one seems to have an immediate solution on how the economy will get better. The news and media do a lot of finger pointing and giving various unpleasant names to the situation such as calling it “the decade of depression”. Our inflation rate is about 2.3%, which is currently lower than the past rate that was 3.4%. As of July 2012, unemployment rate has been around 9.3%, compared to the prior average years back of about 5.6%. Research We all know that if there is unemployment, consumers do not spend as much money and businesses suffer, from that but honestly speaking, not many of us know what these unemployment figures mean or represent for sure. We can assume or estimating what it means without understanding since we were not aware of what it was before or one is not personally affected by the unemployment saga. So it gets to be a bit mind-boggling when some industries throw these percentages out there and expect us all to know what they mean and as a way to get...
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...this part we try to argue position of Indian four wheeler auto sector in effect of global recession around 2008 and current recession (2012-13) caused by local macroeconomic issues. Global recession (2008 onwards) Though global recession took roots in 2007 itself, Indian auto industry could see its real impact only in 2008 quarters. Global auto industry was in tatters due to loss of credit and reduced liquidity. US sales were fallen by 32%. In India, though the situation wasn’t as grim as US, passage care sales dropped from 1,15,481 in 2007 to 1,13,822 in 2008. Some of the reasons of these impacts were high finance cost and fuel prices. Looking on the lines of industry growth in previous years, Indian auto players were investing in increasing production facilities. Where sudden recessionary situation forced SIAM (Society of Indian Automobile Manufacturer) to reduce growth forecast from 12.5% to 9.5%. The result was to run the auto manufacturing plants on low production capacity than installed, increasing overheads and reducing margin. Impact in India was not as severe as it was in US and European markets. Mainly because local Indian macroeconomic indexes were still in good shape plus government act quickly to lower the interest rates and infused liquidity in the system. Current Recession (2012-13) This slowdown in the economy is due to local macroeconomic conditions. Main reasons are high petrol prices, inflation on demand side and increased raw material cost, high cost...
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...Current Macroeconomic Situation student email Week 6 Assignment Our current macroeconomic situation in the United State holds an unemployment rate of 6.7% as of March 2014. While this number does not seem like much of a jump, it has risen from 5.8% in ten years. During this same ten year period, in October 2009, the unemployment rate reached a very scary 10.0%. ("Labor force statistics," ) During the same ten year period our inflation rate has had some dramatic changes as well. Starting 3.3% in 2004, then hit an overall ten year high of 4.1% in 2007. The current inflation rate sits at 1.1%. This does not seem like a high number but some would consider it to be since the inflation rate was 0.1% in 2008. ("Current us inflation," 2014) As far as a recession, there are still people that think we are in a recession. The United States did surface from a recession in 2009. The economy has also been growing for the last five years and gaining in domestic product growth. However, economist Emanuel Saez found that 95% of income gains came from the top 1% of earners. He also found that even their earnings were growing slower. (Barro, 2014) While these numbers may lead some to think we are still in a recession, it is actually showing that wage gain has not kept up with economic growth. During the second half of 2013 and into 2014 the economic market did improve and moved into economic recovery. While recovering, payroll has slowly risen and unemployment is slowly decreasing. The...
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...ECON 515 MACROECONOMIC POLICY FALL 2012 Monday & Wednesday 8:00AM-9:30AM 9:50PM-11:20PM 1:10PM-2:40PM Rawls 3082 INSTRUCTOR: DR. GERALD J. LYNCH Office: Rawls 4039 Phone 494-4388 lynch@purdue.edu Secretary: Sherry Fisher 496-7227 Office Hours: Monday and Wednesday 3:00-4:00 and by appointment Introduction to the topic: As recent turmoil in the financial markets has demonstrated, macroeconomic fluctuations in the economy can create a difficult operating environment for the firm. This situation is further complicated by the fact that it is an environment over which the firm has little control. Even though the firm cannot control the environment, it can still react to economic conditions in ways that minimize its uncertainty as long as it understands the constraints it is facing. The purpose of this course is to help in an understanding of the macroeconomy. Macroeconomics is that branch of economics that seeks to understand and explain changes in output, general prices, employment, interest rates, foreign exchange rates, the balance of payments, and other related phenomena. Emphasis is given in this course to analyzing financial markets where interest rates are determined. We will spend more time than usual on the financial markets this year in response to the uncertainty in that environment today. Also, since the macroeconomic environment in this country is increasingly influenced by international conditions, the factors underlying trade and exchange...
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...and concepts against the backdrop of conceptual and analytical thinking. Visit the web sites or similar ones containing national economic data. National Economic Accounts at the Bureau of Labor Statistics at http://www.bea.gov , Bureau of Labor Statistics at http://www.bls.gov/data/, The Conference Board at http://www.conference-board.org/economics/indicators.cfm, US Census Bureau at http://www.census.gov/mtis/www/mtis_current.html, National Bureau of Economic Research at http://www.nber.org/releases/, The Federal Reserve at http://www.federalreserve.gov/releases/h15/update/ Review the most recent 8 – 12 months of data on real GDP growth, inflation/CPI, unemployment, Interest rates, consumer confidence index, consumer sentiment index, inventory level, and other relevant economic data. Based on the collected data, analyze the current macroeconomic situation and its impact on any two(2) Monopolistically competitive firms of your choice. Explore in particular how the two companies’ respond to the macroeconomic conditions in terms of their: • stock performance, • current and future sales revenue, • current and future profits, • labor costs, and • hiring decisions. Your paper should be double-spaced, font-size 12 Times New Roman, using the headings below, should not exceed four pages (cover, appendices , reference pages, charts and graphs not included) and should meet the APA format and reference requirements. Also, all references must be carefully cited in the APA...
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...Macroeconomics: The Study of Our National Economy Macroeconomics: The study of Our National Economy “Our new economic approach is rooted in ideas which stress the importance of macro-economics, post neo-classical endogenous growth theory and the symbiotic relationships between growth and investment, and people and infrastructure”. (Brown) As we have seen here in the past few years, but more so in the last year, the economy is ever changing. Macroeconomics is the backbone of America and without a stable economy we have serious hurdles in front of us to overcome. John Maynard Keynes developed the Keynesian Theory, which has become the foundation of our government’s economic decisions. During the course of this paper I will outline Keynesian Theorists and Monetary Theorists approach to promote long-run macroeconomic stability, the impact of persistent budget deficits on the trade deficit, options available to policy makers when national savings presents opportunity to improve the trade deficit, appraise the position of the supply side as it relates to government deficits and evaluate recent national economic policies as they relate to the magnitude of the trade deficit. In essence, the inner workings and use of macroeconomics as a financial tool of study to determine how a national economy is managed and sustained. To begin, Keynesian theorists approach to promote long-run macroeconomic stability is somewhat unique. Economist who agree...
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...and concepts against the backdrop of conceptual and analytical thinking. Visit the web sites or similar ones containing national economic data. National Economic Accounts at the Bureau of Labor Statistics at http://www.bea.gov , Bureau of Labor Statistics at http://www.bls.gov/data/, The Conference Board at http://www.conference-board.org/economics/indicators.cfm, US Census Bureau at http://www.census.gov/mtis/www/mtis_current.html, National Bureau of Economic Research at http://www.nber.org/releases/, The Federal Reserve at http://www.federalreserve.gov/releases/h15/update/ Review the most recent 8 – 12 months of data on real GDP growth, inflation/CPI, unemployment, Interest rates, consumer confidence index, consumer sentiment index, inventory level, and other relevant economic data. Based on the collected data, analyze the current macroeconomic situation and its impact on any two(2) Monopolistically competitive firms of your choice. Explore in particular how the two companies’ respond to the macroeconomic conditions in terms of their: • stock performance, • current and future sales revenue, • current and future profits, • labor costs, and • hiring decisions. Your paper should be double-spaced, font-size 12 Times New Roman, using the headings below, should not exceed four pages (cover, appendices , reference pages, charts and graphs not included) and should meet the APA format and reference requirements. Also, all references must be carefully cited in the...
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...The Current Macroeconomic Situation in the United States Name: Institution: Abstract The policy makers in every economy play an imperative role in regulating the macroeconomic activities with the intention of maintaining the economic stability. In essence, economic stability is vital for improving the social welfare of citizens, as well as the economic growth. The current United States economic outlook is not good. The average American is not doing well though there has been an improvement in market performance. The 2009 financial crisis continues to affect the United States economy. High unemployment level is the major economic issues that the country is still experiencing. The unemployment rate is still high although there has been a small improvement in job creation. As a result of unemployment, the consumer confidence as well as business sentiment continues suffering. At present, inflation is not a critical threat to the United States. The Gross Domestic Product is flat. In fact, the growth of real GDP has been excessively slow. The monetary and fiscal policies can help the policy makers in solving the present unemployment problem facing the country. In particular, the policymakers ought to consider implementing both expansionary monetary and fiscal policies since the current level of unemployment is essentially cyclical. With regards to the expansionary fiscal policy, the policy makers should implement it through taxation...
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...of Macroeconomics by Smriti Chand Macro Economics The Nature and Scope of Macroeconomics! Introduction: The term ‘macro’ was first used in economics by Ragner Frisch in 1933. But as a methodological approach to economic problems, it originated with the Mercantilists in the 16th and 17th centuries. They were concerned with the economic system as a whole. In the 18th century, the Physiocrats adopted it in their Table Economies to show the ‘circulation of wealth’ (i.e., the net product) among the three classes represented by farmers, landowners and the sterile class. Malthus, Sismondi and Marx in the 19th century dealt with macroeconomic problems. Walras, Wicksell and Fisher were the modern contributors to the development of macroeconomic analysis before Keynes. Certain economists, like Cassel, Marshall, Pigou, Robertson, Hayek and Hawtrey, developed a theory of money and general prices in the decade following the First World War. But credit goes to Keynes who finally developed a general theory of income, output and employment in the wake of the Great Depression. Contents: Nature of Macroeconomics Difference between Microeconomics and Macroeconomics Dependence of Microeconomic Theory on Macroeconomics Dependence of Macroeconomics on Microeconomic Theory Macro Statics, Macro Dynamics and Comparative Statics Transition from Microeconomics to Macroeconomics Stock and Flow Concepts 1. Nature of Macroeconomics:________________________________________ Macroeconomics is the...
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