Economic Final Project Paper
Running Head: ECONOMIC FINAL PROJECT PAPER
Economic Final Project Paper
University of Phoenix
ECO/372-Principles of Macroeconomics
Professor Wawa Ngenge
March 23, 2009
Economic Final Project Paper The current economy has hurt many retail businesses. Every month another retail giant closes its doors. Retail stores which we never would have imagined have gone bankrupt. Retail sales have declined greatly. Major cause of this declination is because many people are unemployed and cannot afford to purchase anything. Retailers are forced to discount prices to increase sales, but discounting still hurts margins. Retailers are assuming a very demanding situation through the remainder of this year, and the unpredictable direction of the current economy makes forecasting the future performance very difficult. It will take awhile for the retail industry to recover. There are different steps they can take. In order for an industry to survive they should perform SWOTT Analysis. This will determine what their strengths, weaknesses, opportunities, and threats are. This analysis will aid them in surviving against other retail companies. The Real GDP will help the retail industry to determine the current health of the economy. Unemployment rate and inflation also play large role in a retail industry’s survival.
Impact of Past and Current Fiscal Policies When a government increases taxation or decreases spending in an effort to manipulate the economy; it is participating in fiscal policy. Fiscal policy is generally used to control the productivity levels of the economy through taxation and government spending. Governments use fiscal policy, in conjunction with monetary policy, in an effort to control parts of the economy such as GDP and inflation. Many times when economic policy is used it will only affect a small portion of the overall economy. Tax breaks for seniors, people
Economic Final Project Paper
University of Phoenix
ECO/372-Principles of Macroeconomics
Professor Wawa Ngenge
March 23, 2009
Economic Final Project Paper The current economy has hurt many retail businesses. Every month another retail giant closes its doors. Retail stores which we never would have imagined have gone bankrupt. Retail sales have declined greatly. Major cause of this declination is because many people are unemployed and cannot afford to purchase anything. Retailers are forced to discount prices to increase sales, but discounting still hurts margins. Retailers are assuming a very demanding situation through the remainder of this year, and the unpredictable direction of the current economy makes forecasting the future performance very difficult. It will take awhile for the retail industry to recover. There are different steps they can take. In order for an industry to survive they should perform SWOTT Analysis. This will determine what their strengths, weaknesses, opportunities, and threats are. This analysis will aid them in surviving against other retail companies. The Real GDP will help the retail industry to determine the current health of the economy. Unemployment rate and inflation also play large role in a retail industry’s survival.
Impact of Past and Current Fiscal Policies When a government increases taxation or decreases spending in an effort to manipulate the economy; it is participating in fiscal policy. Fiscal policy is generally used to control the productivity levels of the economy through taxation and government spending. Governments use fiscal policy, in conjunction with monetary policy, in an effort to control parts of the economy such as GDP and inflation. Many times when economic policy is used it will only affect a small portion of the overall economy. Tax breaks for seniors, people
References: Carmack, P. S. (2008). The money masters. Retrieved March 20, 2009, from http://www.themoneymasters.com/MM_bailout.pdf Gross, D Kerr, R. (1999). The retail sector and the economy. Retrieved March 20, 2009, from http://www.nzbr.org/documents/speeches Weil, D Colander, D.C. (2008). Economics (7th ed.). New York, NY: McGraw-Hill/Irwin. Rowbotham, M. (1998). The grip of death. The Claire Foss Journal, Retrieved March 21, 2009, from http://www.cfoss.com/grip.html from http://www.dollarsandsense.org/archives/2000/0900bernhardt.html Maestri, N (2008, November 13) Reuters.com, Retrieved March 20, 2009, from http://www.reuters.com/article/ousivMolt/idUSTRE4AC8YF20081113 Update 1-walmart canada to cut prices during march break. (2009, March 17). Reuters.com, Retrieved March 20, 2009, from http://www.reuters.com/article/rbssRetailDepartmentStores/idUSN172621892009