Purchase Solution

Economic Indicators: Inflation, Employment and Interest rate

Not what you're looking for?

Ask Custom Question

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

Purchase this Solution
Solution Summary

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

Solution Preview

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 ...

Solution provided by:
Ashish Sharma, MBA (IP)
Education
  • MBA (IP), International Center for Internationa Business
  • BBA, University of Rajasthan
Recent Feedback
  • "Thank You so much! "
  • "Always provide great help, I highly recommend Mr. Sharma over others, thanks again. "
  • "great job. I will need another help from you. "
  • "first class!"
  • "Thank you for your great notes. Will you be willing to help me with one more assignment? "
Purchase this Solution
Free BrainMass Quizzes
Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

View More Free Quizzes
Related BrainMass Solutions

  • Airline Industry Economic Indicators

    Changes in the employment and interest rates also relate to the business cycle or economic cycle. Business cycle is a pattern of different periods of economic growth and a declining period in an industry (Dwivedi, 2006).

  • Gross Domestic Product, Real GDP, Unemployment Rate, Inflation Rate, Interest Rate

    Interest rate The price, or cost, of debt capital is the interest rate. The real rate of interest is approximated by taking the nominal interest rate and subtracting inflation.

  • How would you define macroeconomics?

    As production increases, companies would hire more people and help bring down unemployment rate) -National debt (GDP can be negated by the amount of national debt) -Feds decisions (The FED can influence inflation by either increasing interest rates

  • Definition of six indicators for Starbucks service store

    Economic Indicators Interest rate: Interest rate is an important economic indicator, which affects the business operation of China.

  • Impact of technology on productivity and average total cost

    The economic indicators are: GDP, Inflation, Interest rate etc. 5) Locate a forecast for each of the economic indicators you have selected for the next two years.

  • Using Economic Indicators to Analyze the Economy

    This solution shows how to use economic indicators such as the unemployment rate and the inflation rate to predict the overall direction of the economy, as well as recommend the appropriate fiscal and monetary policy.

  • Finding and Interpreting Macroeconomic Indicators

    418159 Macroeconomic Analysis: Economic Indicators Interpreting Macroeconomic Indicators Analyze several indicators of the macroeconomic conditions in an economy, such as interest rates, income, and other indicators such as CPI, inventory levels, wage

  • Economic Indicators:Definition/Performance

    In July, total nonfarm payroll employment rose by 163,000, and unemployment rate was basically unchanged at 8.3 % (Bureau of Labor Statistics, 2012). The natural rate of unemployment should be about 6% due to seasonal employees, etc.

  • Economic Indicators

    Common examples of economic indicators are the rate of inflation, the unemployment rate and the GDP.

View More Related Solutions