Econ 545 Project 2 Macroeconomic Analysis
Introduction
Deciding to start a business is brave and adventurous. The first step to success is a brilliant, viable, profitable idea. Whether you have decided to do it on your own because you are tired of working for someone else, or you are laid off after many years in your organization, before you decide to invest your life savings and get buried in debt, consider the big picture, the current economy, your demographic target consumer and do your research. The idea of solar energy is one such brilliant, viable idea. True the demand is present for such energy, but before taking the leap, consider the market saturation, competition, governmental rules and regulations and other determent factor that will influence the success of your venture.
Determinant Factors
The American Economy
Annual percentage growth rate of GDP at market prices based on constant local currency. Aggregates are based on constant 2005 U.S. dollars. GDP is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources. The United Stated economy and those of other high income economies are expected to grow by 1.9 percent in 2014, accelerating to 2.4 percent in 2015 and 2.5 percent in 2016. The Euro Area is on target to grow by 1.1 percent this year, while the United States economy, which contracted in the first quarter due to severe weather, is expected to grow by 2.1 percent this year (down from the previous forecast of 2.8 percent). The global economy is expected to pick up speed as the year progresses and is projected to expand by 2.8 percent this year, strengthening to 3.4 and 3.5 percent in 2015 and 2016, respectively. High-income economies will contribute about half of global growth in 2015 and 2016. (Bank, 2014) As you can see, the economic forecast
Deciding to start a business is brave and adventurous. The first step to success is a brilliant, viable, profitable idea. Whether you have decided to do it on your own because you are tired of working for someone else, or you are laid off after many years in your organization, before you decide to invest your life savings and get buried in debt, consider the big picture, the current economy, your demographic target consumer and do your research. The idea of solar energy is one such brilliant, viable idea. True the demand is present for such energy, but before taking the leap, consider the market saturation, competition, governmental rules and regulations and other determent factor that will influence the success of your venture.
Determinant Factors
The American Economy
Annual percentage growth rate of GDP at market prices based on constant local currency. Aggregates are based on constant 2005 U.S. dollars. GDP is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources. The United Stated economy and those of other high income economies are expected to grow by 1.9 percent in 2014, accelerating to 2.4 percent in 2015 and 2.5 percent in 2016. The Euro Area is on target to grow by 1.1 percent this year, while the United States economy, which contracted in the first quarter due to severe weather, is expected to grow by 2.1 percent this year (down from the previous forecast of 2.8 percent). The global economy is expected to pick up speed as the year progresses and is projected to expand by 2.8 percent this year, strengthening to 3.4 and 3.5 percent in 2015 and 2016, respectively. High-income economies will contribute about half of global growth in 2015 and 2016. (Bank, 2014) As you can see, the economic forecast
Cited: Bank, T. W. (2014, June 01). Global Economic Prospects. Retrieved from Shifting priorities; building for the future: http://www.worldbank.org/en/publication/global-economic-prospects Biz2Credit Francisco, F. R. (2004, February 06). U.S. Monetary Policy: An Introduction. Retrieved from How does monetary policy affect the U.S. economy?: http://www.frbsf.org/us-monetary-policy-introduction/real-interest-rates-economy/ Heakal, R Igan, D. (2013, July 30). iMFdirect. Retrieved from U.S. Fiscal Policy: A Tough Balancing Act : http://blog-imfdirect.imf.org/2013/07/30/u-s-fiscal-policy-a-tough-balancing-act/ Investopedia Now and the Future. (2014). A World of possible futures. Retrieved from Forecasts: http://www.nowandfutures.com/forecast.html Oanda Shahan, Z. (2013, June 27). Clean Technica. Retrieved from Top Solar States vs Top Solar Countries (Clean Technica Exclusive): http://cleantechnica.com/2013/06/27/top-solar-states-vs-top-solar-countries-update/ The National Bureau of Economic Research United States Department of Labor. (2014, December 6). Bureau of Labor Statistics. Retrieved from Databases, Tables & Calculators by Subject: http://data.bls.gov/timeseries/CES0000000001?output_view=net_1mth Wang, U Wikipedia. (2012). List of the Largest Trading Partners of the United States . Retrieved from List of the Largest Trading Partners of the United States : http://en.wikipedia.org/wiki/List_of_the_largest_trading_partners_of_the_United_States