The author of this article, Jeannine Aversa, is stating that key economic indicators point to the likelihood of a recession. Aversa supports her thoughts by noting the real GDP; “crawled at a 1.3 percent pace in the opening quarter of 2007…even weaker than the sluggish 2.5 percent rate in the closing quarter of last year.” The author suggests the main cause of the economic slowdown is due to “the housing slump.” Consumer expenditures are driving the economy, but Aversa worries about a “fallout from risky mortgages and rising energy prices.” Uncertainty of the Feds actions concerning the interest rates is leading to lower investment spending. The author also states that the Feds decision on raising or lowering the interest is due to the
The reduction of energy prices mid 2008 is being credited for the overall inflation price slowing. Inflation is predicted to remain under control in the near future (Bernanke, 2009). Congress have initiated steps by the passage of a fiscal Policy plan in which hope to improve the economy fast is the goal. The plan is geared to stimulate the economy by putting more money in the hands of the consumer by reducing individual taxes allowing people to retain
Current macroeconomic issues 2.1 Steady growth GDP can be seen as “the total annual output of goods and services on which aggregate demand is spent” (Sloman, 2008, p.277); it can be calculated as the sum of consumer spending, investments, government spending and balance of import and export. 2.1.1 Current issue UK has a fluctuant GDP since 2009. There is both positive and negative growth in the recent years (Trading Economics, 2013). GDP of UK shrank by 0.3% at the end of 2012, which is mainly attributed to drop in mining and quarrying industry, after maintenance delays at North Sea oil field. Manufacturing is another sector that causes the negative growth in GDP; it has decreased by 1.5% than the year before.
Leading indicators signal future events. The index of leading indicators is one of the tools used to measure the business cycle. In 2009, the real GDP growth was -2.5%, unemployment rate was 8.3%, and the CPI was 0.30%. Combine these information; we know that Canadian economy experienced the recession in 2009, which was trough phase. The real GDP is important indicator that helps to measure the economic fluctuation.
George W. Bush would lead us through the 2001 and beginning of the 2008 recessions. During this time period there was one main chairman of the Federal Reserve, Alan Greenspan. This paper examines the causes of these recessions, outlines the monetary and fiscal policies used to combat the recessions and return the country to prosperity. In addition, the PepsiCo Corporation
Surveys require several understandings; the most basic is the level of measurement found in the survey. The levels of measurement include: nominal, ordinal, interval, and ratio. These measurements identify the differences in the results of a single survey or group of surveys. For Learning Team C, surveys are used to determine the results and specific outcomes of the recession and economy downturn that began in 2007. Team C Survey Questionnaire
September 11 attacks Economic, Financial and Policy Consequences PetreAlina PopescuSimona ASE,COMERCE First Year,312 STRUCTURE Foreign Affairs Some of the major effects: * A push toward recession * Growing risk aversion * Mixed impact on business investment * The micro-economic level * Insurance liability * Spike in defense spending * Manhattan reconstruction * Fixed-income markets * The dollar
In fiscal year 2008, the return on invested capital of continuing operations was 9.5% compared to fiscal year 2007’s 13.9%. The decrease reflects the decrease in operating profit that also impacts the rationalization charges. If the rationalization charges are excluded the return on invested capital for continuing operations would have been 11.4% (Phillips, Libby, Libby, 2011). The cash flow statement shows the movement of cash within a company. The cash flow statement is split into three categories: operating activities, investing activities, and financing activities.
(Cover story). Chemical Week, 170(40), 20-21. Retrieved February 18, 2009, from Academic Search Premier database. Rebecca Coons describes the obstacles to alternative energy development presented by an economic downturn coupled with low oil prices. Coy, P. (2008, September 15).
m. a meeting was held by the FOMC (The Federal Reserve, 2011). Reports say developments in domestic and foreign markets are evident since the last FOMC meeting on June 21-22, 2011 (The Federal Reserve, 2011). An indication proved the recovery of the economy remained slow in recent months (The Federal Reserve, 2011). Labor markets conditions remained weak, and the recent recession was deeper than previously thought according to the Bureau of Economic Analysis (The Federal Reserve, 2011). This was realized by the real gross domestic product and how it did not attain its pre-recession peak by the second quarter of 2011 (The Federal Reserve, 2011).