Free Essay

Intro to Economic Impact Analysis

In: Business and Management

Submitted By lgeise
Words 2004
Pages 9
Economic Impact Analyses analyze the economic effects of a particular project in a particular area. This analysis can cover a region as small as a neighborhood and as large as the world. The main variables analyzed include revenue, profits, wages, and jobs. They consider the direct impact the economic impact has on an area as well as indirect impacts. For instance, you can analyze the total number of employees a firm will hire if it builds a new factory. You can also analyze what this increase in employment will do to other non-related industries in the area. These newly employed workers will have more money to spend at a local store which will in turn create more profits and potentially more jobs. It typically analyzes activity before the project and after the compare the changes and the impact of the project. This is typically done by measuring the difference in economic activity assuming the economic event occurs and then assuming it does not occur. This is called the counterfactual case. An economic event can be defined as a new business moving into a region, a new policy or government program, or any other activity that produces some sort of profit. This is useful to determine if a particular project is worth investing in (Southwestern Oklahoma State University, 2012) .

The main types of impact analysis include output impact, value added impact, labor income impact, and employment impact. There is also a property value impact. An output impact measure the total increase in sales revenue. This profits are not all used directly within the region so this impact does not show just local business profits. The value-added impact is a a measure of how the economic activity changes in the region's gross regional product. This is a more specific regional analysis. It shows the impact of the increase in local wages and business profits. This form of analysis has the problem of potentially overstating a region's profits if they are transferred outside of the region. The labor income impact shows the increase in the total money paid to local employees in salaries and wages. This change in income may come from a raise, increased hours worked, or additional jobs that were added affecting the unemployed. This shows the effect on personal incomes instead of business revenue. The employment impact analyzes similar effects. This measures the increase in the number of total employees in a region. It doesn't measure the impact in terms of money, but instead in the total number of jobs in the region. A property value impact measures the increase in total property values caused by the additional generation of income and wealth (Clower, 2011).

Economic Impact analysis are used to determine the effects of some sort of investment. An investment could range from the addition of a factory to the creation of a new government program. They analyze how this investment will impact various components of the regional economy. This allows for more efficient allocation of resources among competing projects. It also allows decisions to be made about policy that might affect investment. For instance, this could be used to determine how a new tax might affect attracting or already existing businesses in a region. It also gives politicians and policy makers actual numbers to test political strategy and appropriately plan to change strategy.

Economic impact analysis includes several basic models that are used in analysis. Input-output models consider the suppliers of labor inputs to regional industries and the purchases of regional outputs. The components considered in the earnings include wages and salaries, proprietors' income, directors' fees, and employers contributions for healthcare minus personal contributions for social insurance. The household column in this analysis is based on personal consumption expenditures. The direct effects in input-output models analyze the direct activities of the project, the effects in terms of output or employment. The indirect effects in this model show the impact on firms that supply the activity that is defined in the direct effects. The induced effects show the impact of spending by households caused by the direct and indirect effects. There are several assumptions that go along with input-output models. It is assumed that there are constant returns to scale, linear and homogenous product function, perfectly elastic factor supplies, and constant technology (University of Minnesota, 2013) .

Another main type of economic impact model is the economic simulation model. These tend to be more complex and deal with econometric and general equilibrium models. The one benefit of these models is that the forecast the impacts caused by future economic and demographic changes.

Input-output models can be analyzed through several programs. The three most common are IMPLAN, RIMS-II, and EMSI. IMPLAN began creating economic impact modeling data in 1976. This data has been adapted and updated over the years to include more data sets from additional regions and sectors (IMPLAN, 2014) . RIMS II was developed in 1970's by the US Department of Commerce. It is a relatively inexpensive option, but it also very simplified in terms of its capabilities. These systems are best for analyzing project specific analyses. This is due to the more static nature of the programs.

Economic Simulation models are typically analyzed using a REMI Model. REMI was created in 1980 and is a hybrid of input-output and econometric models. It is probably the most complex of the modeling systems. It allows a researcher to create very complex and dynamic models and analyze them over time. However, it is very expensive and with its complexity, it can be difficult to use. REMI is primarily used to analyze how actions or initiatives change dynamics and consumer behavior in the market. For example, it offers specific components to analyze how a tax policy would affect a region. (Lynch, 2000)

These modeling software have been used in countless research. They provide an excellent tool for quantitative economic research. An example of using an input-output model in research is the study by Kim, Chon, and Chung to analyze the economic impact of the convention industry in South Korea. They used an input-output model to examine the effects of this industry on output, employment, income, value-added, and import. They found that the economic impact of the convention industry was very significant on the Korean economy. The highest multiplier for this study in terms of output was the business consumption expenditures sector. The value of this multiplier was found to be 2.5346. This is directly related to the convention sector, so it is logical that this would be the largest. In term of the employment multiplier, the restaurant industry experienced the highest increase. This multiplier was found to be 0.1489. The largest income multiplier for this study was Education and Medical services. This value was found to be 0.6741. The largest value-added multiplier was for finance/insurance with a value of 0.9543. The researchers also found that the total expenditures by foreign delegate and convention hosts were approximately $66 million and $73 million US dollars respectively. The researchers also noted that because Korea is quite small, the impacts will occur at more of a national than regional level (Kim,Chon, Chung, 2002).

Another interesting use of economic impact analysis is the study on tobacco consumption on the poor in Bangladesh. The researchers sought to determine the extent of tobacco expenditures in Bangladesh and to compare this with the potential investment in food and other essentials. The researchers found that the poorest households in Bangladesh as twice as likely to smoke as the wealthiest households. They also found that the average male smoker spends twice as much on cigarettes as is spent on clothing, housing, health, and education combined. This paper uses a very simplified economic impact analysis model and focuses on the differences in household expenditures on cigarettes compared to other basics (Efroysmson, et al. 2001).

Economic impact analysis has also been used to analyze tourism in the Seychelles. This study focused 1991tourism expenditures on incomes, employment, public sector revenue, and the balance of payments in the Seychelles. The researchers found that the impact varies significant depending on their country of origin. They found that this difference is primarily a result of the different magnitudes of expenditure rather than to variations in the size of the multiplier by country of residence. The researchers found that the largest multiplier value was in the communications industry as well as the air transport industries with a value of 1.54. The largest country expenditure for origin of tourists was found to be the UK with tourism expenditure of 90,649 in terms of local currency. (Archer & Fletcher, 1996)

Researchers also analyzed the economic impact of sporting events. They focused primarily on the direct expenditures by tourists associated with the event but stressed that it is important to only count that expenditure only if it would not have occurred without the event. They specifically focused on tourists that intentionally timed their visit to coincide with a particular sporting event. The researchers used an input-output model to analyze the host economy. This paper does not specifically model a situation, but instead discusses the difficulty of modeling complex situations such as tourism for a particular event. The researchers suggest that surveys are the best method for analyzing this type of tourist data on a region (Burgan & Mules, 1992).

Another interesting use of economic impact analysis is analyzing the indirect and direct costs associated with a migraine. I found this application particularly interesting. The researchers analyzed whether migraine sufferers incurred greater costs than those without migraines. The researchers found that migraine sufferers had higher direct medical costs over a six month period with $522 versus $415 spent by non-migraine sufferers. They found that this was mostly a result of increased number of physician visits by those with migraines. They also found that the indirect cost due to lost productivity were more than $200 for those with migraines. This brought the total direct and indirect costs for people with migraines to $1,242 versus $929 for those without migraines. They further researched the costs for those with severe migraines compared to moderate ones and found that people with severe migraines had higher direct and indirect costs compared to those with moderate migraines bringing the costs to $1656 and $685 respectively. This is a really interesting application of economic impact analysis in a difference sector. This has implications for employers, insurance companies, and those with migraines (Edmeads & Mackell, 2002).

Economic impact analyses are very effective ways to analyze the economic effects of a particular event. This methodology and programs used to analyze them have implications in research for a wide variety of sectors. It is important to understand how these work in order to determine the effects and potential of a particular project or event.

Word Count: 1775


• Archer, B., & Fletcher, J. (1996). The economic impact of tourism in the seychelles. Annals of Tourism Research, 23(1), 32-47.

• Burgan, B., & Mules, T. (1992). Economic impact of sporting events. Annals of Tourism Research, 19(4), 700-710.

• Clower, T. (2011, October 27). Overview of economic impact analysis.

• Edmeads, J., & Mackell, J. (2002). The economic impact of migraine: An analysis of direct and indirect costs. Headache, 42, 501-509.

• Efrosmnson, D. (2001). Hungry for tobacco: An analysis of the economic impact of tobacco consumption on the poor in bangladesh. Tobacco Control, 10(3), 212-217.

• 2014

• Kim, S. S., Chon, K., & Chung, K. Y. (2002). Convention industry in south korea: an economic impact analysis.Tourism Management, (24), 533-541.

• Lynch, T. (2000, October). Analyzing the economic impact of transportation projects using rims ii, implan and rem. Retrieved from‎

• Southwestern Oklahoma State University. (2012, December).Economic impact analysis. Retrieved from

• University of Minnesota. (2013). About economic impact analysis. Retrieved from…...

Similar Documents

Premium Essay

Negative Economic Impact of the Ppaca

...Negative Economic Impact of the Patient Protection and Accountable Care Act The Patient Protection and Affordable Care Act (PPACA) also referred to as ObamaCare, federal healthcare law, Affordable Care Act, or ACA, is a United States federal Statute signed into law on March 23, 2010, by President Barack Obama. In combination with the Healthcare and Education Reconciliation Act, it represents the most significant regulatory overhaul of the U.S. healthcare system since the passage of Medicare and Medicaid in 1965 (Patient Protection and Affordable Care Act). The PPACA is intended to increase the number of health insured Americans and reduce the overall costs of healthcare. The PPACA will revamp the current health insurance system by extending health insurance coverage to nearly 32 million currently uninsured Americans; 18 million through Medicaid expansion to individuals with incomes under the 133 percent federal poverty line (FPL), and 18 million through government exchange subsidies to individuals with incomes up to 400 percent of the FPL. Citizens and legal residents in families with income between 100 and 400 percent of poverty who purchase coverage through a health insurance exchange are eligible for a tax credit to reduce the cost of coverage. To subsidize the additional 32 million individuals covered, the new law introduces 18 new taxes and penalties on individuals, employers, and businesses (Campbell). Though the PPACAs intent is to lower healthcare costs, it......

Words: 3283 - Pages: 14

Free Essay

Economic Analysis

...of the balance of payments. Both imbalances imply a low rate of time discount by both government and society: consumption in the present is forgone in favour of consumption in the future. The paper examines how these imbalances came about, and goes on to consider whether they can be sustained and how they might be redressed. There is no evidence that the rapid capital accumulation has reduced the rate of profit on capital and thus the incentive to invest. However, persistent external imbalance poses a threat to investment if it generates excess liquidity and asset bubbles. The current account surplus rose remarkably in the years 2004-7. This was associated with exogenous increases in competiveness and in saving, both attributable to the economic reform policies. On current policies, the surplus is likely to rise again once the world economy recovers from its recession. This poses three sorts of problems, each of which is examined in turn: difficulties for macroeconomic stabilization policies; risk of capital loss on the foreign exchange holdings; and the threat of retaliation by China's trading partners. A combination of internal and external policies will be required to redress the imbalance. JEL Classification: E21; E22; E61; F32; F41; F51. Keywords: China; investment; consumption; current account; exchange rate; external imbalance; macroeconomic imbalance. i John Knight and Wei Wang China's macroeconomic imbalances: Causes and consequences John Knight and......

Words: 13756 - Pages: 56

Premium Essay

Negative Impacts of Economic Reccession

...Negative Impact of Economic Recession By Tejvan Pettinger on September 11, 2012 in economics A recession means a fall in GDP / national output. A recession will typically be characterised by high unemployment, falling average incomes, increased inequality and higher government borrowing. The impact of a recession depends on how long it lasts and the depth of the fall in output. The great recession of 2008-12 has shown many of the negative impacts of recession. Unemployment Not everyone is affected equally by a recession. A fall in GDP will cause a rise in unemployment. This is because: • Some firms will go bankrupt meaning all workers lose their jobs. • In an effort to reduce costs, firms will cut back on hiring new workers. Therefore, unemployment often affects young people the most. In this recession, unemployment in the UK has risen to over 2.6 million, though given the depth of the recession, you might have expected it to be even more (e.g. in 1980s, unemployment rose to over 3 million). However, in Europe, many countries in recession have seen a catastrophic rise in unemployment. With rates of over 20% in countries such as Greece, Spain and Portugal. [pic]  Rise in Spanish Unemployment. Source ECB Lower wages Firms will also try to reduce costs by keeping wages low. Some workers (especially temporary workers without contracts may see wage cuts) This has been a key feature of the 2008-12 recession, also aggravated by rising costs of living. With...

Words: 861 - Pages: 4

Premium Essay

The Economic Crisis and Its Impact on Defense

...THE ECONOMIC CRISIS AND ITS IMPACT ON EUROPEAN AND CYPRUS DEFENSE By Dr Aristos Aristotelous The relentless question of prioritizing and allocating scarce national resources to unlimited uses and requirements becomes even harder in times of economic crisis. In Cyprus - as in other EU countries - the tragic state of the economy and the need to exit from the crisis, brings unbearable pressure on military spending and is impacting on priorities in the defense field. Europe Under the burden of financial constraints and the need to protect or further enhance the welfare state, the defense sector in many European countries - especially after the end of the Cold War - was usually targeted for cuts, so as not to deprive other sectors from these funds. Today, with the neoliberal ideas of restricting or even terminating the welfare state, and in light of the crisis in Europe, the cuts are extended more drastically than before in other fields of government expenditure. However the defense sector still is for the governments and the European publics a much preferable area than pensions, health education, etc., for such cuts. Between 2009 - 2012, defense spending among NATO countries as a whole fell by $ 56 bn. Also among the countries of Europe in general, defense spending fell from $ 303.1 bn in 2011 to $ 280.1 bn in 2012 (IISS). Notable reductions were those of big countries like Germany, from $ 48.1bn to $ 40.3 bn and France from $ 53.4 bn to $ 48.1 bn. In those troubled......

Words: 873 - Pages: 4

Premium Essay

Economic Impact of Recycling

...The intent of this research report is to examine the vast array of factors that create the necessity of learning how to efficiently use the technology available to both improve upon and generate new processes that will make a global recycling effort a successful endeavor to improve the quality of life on the planet and the health of the planet itself. To be discussed are the major areas of impact including the social, financial, and environmental considerations and the unique challenges that arise with each variable toward the end of balancing the basic needs of a prosperous civilization with the potential of its resources, (US EPA, OSWER, Office of Resource Conservation and Recovery, 1998). The practical aspects of each will be examined for advantages and disadvantages within the framework of an economic base and the measures that must be taken to reshape the paradigm that currently governs the path of both human civilization and that of the ecological growth of all life on Earth. Of all of the wondrous mechanisms that exist within the living cell, one of the most profound is the genetically coded activities that utilize raw materials in order to synthesize new substances which then react, forming reaction products that are often in turn used for other processes. Human society, as within the cell, consists of a multitude of individual systems that work together toward the continued life and growth of the whole. The basic building blocks of life serve as the perfect model......

Words: 1577 - Pages: 7

Free Essay

Ict and Its Impact on Economic Growth Contact No:- 9029787363 ICT AND ITS IMPACT ON ECONOMIC GROWTH Exploring the growth potential of ICT ------------------------------------------------- Abstract: ------------------------------------------------- Past decade saw the growth of service sector and marveled on the growing potential of the IT industry. This became more relevant if we see the exponential growth of Internet along with T.V and Radio. So Information Technology (IT) along with Communication Technology (C.T) converges to give us a unique combination of ICT-Information and Communication Technology. This paper attempts to understand the contribution of ICT in the growth story of India. It analyzes the contribution towards growth with the help of four major components of ICT: Internet, Telecom, IT sector, T.V and Radio. The paper presents data and statistics providing sample evidence of the ever growing contributions of ICT towards income generation and employment for the country and thus having a major economical impact. Finally the paper concludes with the fact that it is high time to acknowledge the relevance of ICT within the service sector and growth cannot be looked exclusive of it. Information and Communication Technology:- Number of different studies find that there is a positive impact of the spread of ICT on national output (Röller and Waverman 2001, Sridhar and Sridhar 2004).According to a recent World Bank analysis of 120 countries, for every 10 percentage......

Words: 2424 - Pages: 10

Free Essay

The Impacts of Economic Growth

...The Impacts of Economic Growth Economic growth is the increase in the amount of the goods and services produced by an economy over time. It is conventionally measured as the percent rate of increase in real gross domestic product, or real GDP. There are many positives and negatives with economic growth. Economic growth improves standard of living through sustained GDP growth, it improves tax revenues and provides the government with more money to spend on healthcare, education etc. Growth boosts business profits, a stronger economy increases consumer confidence therefore allowing people to purchase luxuries and once again improve their standard of living. Economic Growth will also increase employment, as growth increases as do business profits, therefore companies have more available finances to be able to pay wages and therefore levels of employment increase. Economic Growth can help protect the environment, as business profits increase, companies have more finance and can therefore invest in carbon investment, innovation and research and development to reduce the amount of harmful substances released during the production stages, therefore reducing their effect on the environment. On the other hand, economic growth poses as a threat of inflation risk. Increase in demand may be more than available supply and will therefore cause prices to rise, so consumer confidence decreases along with standard of living and business profits. Economic growth can have a......

Words: 321 - Pages: 2

Free Essay

Economic Growth Impacts

...The Impacts of Economic Growth Economic growth is the increase in the amount of the goods and services produced by an economy over time. It is conventionally measured as the percent rate of increase in real gross domestic product, or real GDP. There are many positives and negatives with economic growth. Economic growth improves standard of living through sustained GDP growth, it improves tax revenues and provides the government with more money to spend on healthcare, education etc. Growth boosts business profits, a stronger economy increases consumer confidence therefore allowing people to purchase luxuries and once again improve their standard of living. Economic Growth will also increase employment, as growth increases as do business profits, therefore companies have more available finances to be able to pay wages and therefore levels of employment increase. Economic Growth can help protect the environment, as business profits increase, companies have more finance and can therefore invest in carbon investment, innovation and research and development to reduce the amount of harmful substances released during the production stages, therefore reducing their effect on the environment. On the other hand, economic growth poses as a threat of inflation risk. Increase in demand may be more than available supply and will therefore cause prices to rise, so consumer confidence decreases along with standard of living and business profits. Economic growth can have a......

Words: 321 - Pages: 2

Premium Essay

Economic Impact of Opening Border

...The Economic Impact of Opening the Armenian-Turkish Border Mher Baghramyan Armenian International Policy Research Group Armenia Norwegian Institute of International Affairs (NUPI) Regional CompetenceBuilding for Think-Tanks in the South Caucasus and Central Asia 2012[2009] Mher Baghramyan Email: The Economic Impact of Opening the Armenian-Turkish Border Abstract: This research attempts to analyze and evaluate the possible economic impact of opening the Armenian-Turkish border. Results obtained by analyzing currently existing trade flows are combined with opinions and estimates gained during interviews with experts, businessmen, and government officials, as well as from mass-media and professional publications. Different sectors of the economy such as energy, tourism, transportation and agriculture are considered. Sectors of the Armenian economy that might have competitive advantage or disadvantage after the border is opened are also identified. Policy makers should pay special attention to those sectors that are expected to be most affected, while measures must also be developed to protect vulnerable sectors. In order to maximize the expected benefits of the border opening, the government should also facilitate improvements in the overall competitiveness of Armenian companies by investing in infrastructure in the border regions, such as railways, roads, warehouses and providing transparent, fair and effective public services, in......

Words: 5157 - Pages: 21

Free Essay

Isis Economic Impact

...but because they take advantage of China’s new social and economic freedoms to choose when to work with the state and when to work outside state institutions. Although this new group consists of relative outsiders, I argue that it is growing in influence as a source of ideas about China’s future—and the world’s future—that can push Beijing to be more assertive. To see how proclamations of building a harmonious world contributed to China’s current conflicts with its Asian neighbors and Western powers, it is necessary to trace how Hu’s foreign policy encourages China’s officials and its citizen intellectuals to talk about post-American world orders. To explore this debate, the essay will compare Beijing’s official view of “building a harmonious world” with the views of two citizen intellectuals regarding China’s future and the world’s future. The works compared are Professor Zhao Tingyang’s Tianxia Tixi: Shijie Zhidu Zhexue Daolun (The Tianxia System: The philosophy for the world institution) (2005) and Senior Colonel Liu Mingfu’s Zhongguo Meng: Hou Meiguo Shidai de Daguo Siwei Zhanlüe Dingwei (The China dream: The Great Power thinking and strategic positioning of China in the post-American age) (2010).2 The Tianxia System uses traditional Chinese ideas to craft a new world order; The China Dream argues that the People’s Republic of China (PRC) needs a military rise to guard its economic rise. These two books are important because they exemplify......

Words: 11161 - Pages: 45

Premium Essay

Economic Impact

...up a gallon of milk. To pay $55-110 a year for a gallon of milk doesn't make sense, especially since Costco only sells packages of two gallons. Now you would have to spend more and are responsible for not letting the milk go to waste. This maintains local stores as an alternative option for consumers where they can shop between Costco and local stores. Unlike Wal-Mart which is another rival to local stores that consumers choose between shopping only at one store based on the consumer's budget, Costco and local stores are more complementary based on the consumer's time and convenience. Now the other comparative advantage that Costco possesses is convenience and ironically this works both ways for Costco, negatively and positively. One impact that every Costco brings is traffic; from people locally to people a few towns away. By project engineer, Mark McCulloch, Traffic is expected to increase roughly twenty percent for the next twenty years in Pittsfield. This means Costco will always have a large amount of consumers coming in and out however this places consumers at a fork in the road. Costco only sells bulk products and now has an increase traffic flow around its store. For consumers who plan on doing their groceries for the week or two will find Costco the best solution. They will save more and get more for what the wait is worth due to traffic. However for consumers who wish and need to only pick up one unit of an item may not find Costco a reasonable choice. The......

Words: 1613 - Pages: 7

Free Essay

Economic Impact

...Economic Analysis The Memphis Grizzlies and The FedEx Forum Bill Madigan Southern New Hampshire University Abstract Economic impact is generated by the continuous operations of the FedEx Forum facility and by the daily operations of the Memphis Grizzlies. Additional impact is generated by the spending of visitors who come to Memphis for the sports and other entertainment events held at the FedEx Forum throughout the year. Visiting NBA teams also spend money which has direct impact on Memphis and Shelby County. Each year numerous events are held at the FedEx Forum and they bring in out-of-county visitors to Memphis and Shelby County. This impact is also a key point in the revenue generated for the area. In 2009/2010 the revenue generated by the Memphis Grizzles and other entertainment was about $223 million. The total number of jobs brought in by the Memphis Grizzles and the FedEx Forum is close to 1,534. This includes the jobs employed directly by the two entities and jobs that exist throughout the county that assist in visitors who come to the area. When discussing the economic there are many facets to look at besides jobs and income. The business plan of the Memphis Grizzles is Fans First. They do a tremendous job taking care of the fans and in return have seen a tremendous growth in ticket sales. Full Season Ticket sales for 2013-14 increased by over 20%. They have sold out 17 consecutive home playoff games. Corporate renewal rate is well over 90 percent.......

Words: 466 - Pages: 2

Premium Essay

Managerial Economic Analysis of the Impact of Social Commerce on E-Commerce

...Research Paper Managerial Economic Analysis of the Impact of Social Commerce on E-commerce Submitted by Student Prepared for Professor Thomas C. Makemson BUSN 6120, Managerial Economics Spring 1, 20XX Section: XX Webster University March 2, 20xx CERTIFICATE OF AUTHORSHIP: I, xx, certify that I am the author.  I have cited all sources from which I used data, ideas, or words, either quoted directly or paraphrased.  I also certify that this paper was prepared by me specifically for this course. ____________ 03/02/20xx Signature Date Today, Facebook, Linkedin, Twitter, MySpace are well-known social networking brand names that many of us have grown accustomed to making part of our daily routine, whether it be for staying in touch with friends, networking, or micro-blogging. Social networking tools have the potential to revolutionize e-commerce as we know it today through “social commerce” platforms. A 2011 study by Booz & Co estimates that social commerce is currently a $5 billion market with the potential to grow to $30 billion in five years (Booz & Co., 2011). Social commerce's transformational power lies in its personalization of the internet experience, connectivity with an individual’s network, and the dynamic customer data collection that can drive current and future marketing and sales efforts. In this paper, the author will introduce the social commerce concept, examine the social commerce......

Words: 5094 - Pages: 21

Premium Essay

Analysis of the Business Cycle and Its Impact on Economic Indicators

...Analysis of the Business Cycle and its Impact on Economic Indicators Olufunmilayo Ogutuga Economics For Managers ECON 550 Professor Saad Khalil December 10, 2011 | | Abstract It is no surprise that the economy of The United States of America is going through a cyclical peak. During the various business cycles, economic indicators revealed how the economy is doing based on gross domestic product, employment, inflation, retails sales etc. This paper would critically examine the business cycle and its implications in terms of higher sales, consumer demands and labor cost. It will also analyze how economic indicators such as Real GDP, Unemployment and Inflation have been impacted by the current and unfortunate economic situation faced in the United States today. Introduction The United States, like many other countries, is experiencing a major change in its economic system; and it is currently coming out of a recessionary business cycle which saw the production of goods and services decline, and unemployment on the rise; but the economy is moving at a snail's pace, easing into a peak. The paper will focus on how to interpret the business cycle and explain the current business cycle in the United States through an in-depth and critical look at the economic indicators. These Economic indicators will reveal the current economic......

Words: 1590 - Pages: 7

Premium Essay

Economic Analysis

...Economics Analysis of Saudi Arabia History of Saudi Arabia Saudi Arabia is a member of the Gulf Cooperation Council (GCC) (Bowen, 2008; Fasano and Iqbal, 2003). The country traces its origin back to the early empires of the Arabian Peninsula, which is an ancient trade centre. At present, Saudi Arabia serves a key role in the Islamic world, as it is the birthplace of Islam and the place where Mecca and Medina are located. Thus, the country frequently receives Islamic visitors during the annual Islamic Haj, as it owns the holy city of Mecca. The modern Kingdom of Saudi was established by King Abdulaziz Al-Saud, in 1932, and since then, the Kingdom has grown from a desert nation to a recent, classy state and a chief player on the global stage. Since time immemorial, Saudi Arabia has been an essential stake of the Arab world. Its huge supplies of oil and close links to America guaranteed its place, since the times of the cold war till when a wave of turbulence bust in Tunisia, during the month of January 2011, and touched the entire region. Currently, the ruling family in Saudi is experiencing a different world, anxiously. Early this month, Saudi Arabia pronounced the demise of Prince Nayef bin, who was a dedicated minister in the war against Al Qaeda and who was ignorant to change of democracy. After a few days, Prince Salman replaced him as the Crown Prince. Salman had served as a governor of Riyadh for almost 50 years ahead of his endorsement to the ministerial......

Words: 2959 - Pages: 12