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Economic Indicators: Inflation, Employment and Interest rate

Describe how the economic indicators, inflation, employment levels and interest rates, affect the long-term strategy and competitiveness of your firm/business and industry.

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The response addresses the queries posted in 661 words with references.

//Prior to understanding the effect of the economic indicators on the strategies and competitiveness of the business organization and firms, it is better to understand the concept of the economic indicators. In this series, the first section of the discussion is including three main indicators, e.g. Inflation, Employment and Interest rates.//

Economic indicators are the measures of the performance of the economy. They show how well the economy is performing. These include various indices such as employment level, inflation measures (for e.g. CPI), GDP, changes in money supply, etc. All these indicators are related with each other and changes in any one indicator has an effect on the others. In the present competitive world, it becomes essential for the business to consider all these indicators while formulating the long term strategies. They help the firm in determining the size of the demand for its product, expected cost of production and earnings, etc.

Inflation is the increase in the price level ...

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The response addresses the queries posted in 661 words with references.