Analysis of the Business Cycle

In: Business and Management

Submitted By meek614
Words 1184
Pages 5
Analysis of the Business Cycle
Tamika Williams
Professor Amiel
Managerial Economics & Globalization
March 15, 2011
Strayer University

ABSTRACT
The purpose of this paper is to take an economical and statistical look of where the economy is headed for the next coming years. Review the outcome of the economy over the past three years and what direction it’s going. Based on this review, it will show the current state of the economy and the impact to the Oligopolist in terms of prospects for higher sales and labor costs will be highlighted.

The economy has continued to remain small despite some economic growth over the past two years. It has been said the economy will continue to grow because of the positive turn around in 2009 but in my opinion I do not think so. Due to multiple factors that the US has experience over the recent years such as unemployment which is causing a financial burden on the economy, I cannot see the US making substantial come back. The loss of countless jobs has put a financial strain on the country; while ours who are still employed struggle to maintain their jobs and contribute to the unemployment rate which has continue to climb. As shown in Figure 1) a steady rise in the unemployment rate from 7.75 % in early 2009 to over 10% in 2009 and 2010. The unemployment rate continues to grow due to corporations expecting for the economy to continually to fail; Shareholders cut cost by cutting jobs. Even with the government making efforts to hire back people the unemployment rate is still above 9% which is a concern for the economy.
Another key factor of the economy going in a downward spiral was the financial crisis in 2008. The collapse of the housing market caused by many financial institutions offering mortgage loans to credit-impaired consumers, although at higher interest rates to compensate for the greater risk. To the…...

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