Interpreting Macroeconomic Conditions
Interpreting Macroeconomic Conditions1
Interpreting Macroeconomic Conditions - Assignment 4
Managerial Economics and Globalization – ECO 550
Interpreting Macroeconomic Conditions 2
This assignment involves analyzing several indicators of the of the macroeconomic conditions in an economy, such as interest rates, income, and other indicators such as CPI, inventory levels, wage rates, consumer confidence, etc. Analyze these indicators and prepare a 3-4 page report explaining the expected short impact on firms in the following industries, retail business and automobile industries in terms of product sales and operating costs.
I feel it would be better served to explain exactly what macroeconomics means. Macroeconomics evaluates or examines the overall performance of the economy as a whole and in this process we can determine what causes the economy to grow and how indicators such as interest rates, income, wage rates, employment and unemployment can affect the overall performance of our economy in its current state as well as forecast predictions for the future. This type of activity and performance is often measured through the GDP (Gross Domestic Product); the total value of all goods and services in the market. This information can be applied to any firm/business to evaluate how these changes impact their product sales and operating costs in the United States.
If were to evaluate a local retail business in the Birmingham area, we could observe a company called Kirkland’s Home. Kirkland’s Home is a leading retailer that specializes in home décor. They were founded in 1966 in Jackson, Tennessee and have spread throughout thirty five states. Kirkland’s is among a few elite businesses that claim they are debt free; all revenue is in the black, never in the red.
Interpreting Macroeconomic Conditions 3
I’ve had the privilege to work for this...