International Paper
ECO561 / Economics
International Paper
Introduction
see and Justify Macroeconomic Measures for Pricing and Output
The economy is measured ground on annual total output of goods and services and is called the uncouth domestic product or GDP. (McConnell, 112) Additionally the GDP immortalises what each(prenominal) sector or industry pays for the goods and services it receives. Based on data provided in the Bureau of Economic Analysis attention Economic Accounts, we know that the gross output for the go vehicle industry is portentously higher than adult carry simple machines output. (www.bea.gov) There are several different factors that could opposition why Big Drive is lower than the national average. These entangle potential differences such as the amount of topical anaesthetic competition, the local economy, and possible higher unemployment rates all of which lead to less(prenominal) disposable personal income. Interestingly Big Drive sales continued to grow while the GDP declined between 2005 and 2007.
Big Drive Auto is a multistate dealer of several manufacturers cars and trucks. They deal the vehicles, service them, sell parts for repair, and do a significant business in motor oil, coolant, and replacement tires.
As they scram a diverse product line, they can be impact positively or negatively by any change. From 2002 to 2007, their indices show a constant increase in overall sales. This differs from BEA data which shows a steady increase until 2005 where the gross output for the motor vehicle industry dipped from $494.7 billion to $493.5 billion in 2006. The BEA also shows a decline for 2007 to $477.6 billion. Big Drive see increases in those years in all three areas in which they track sales prices.
Relationship between Big Drives Data and Macroeconomics Measures Selected
This dealer has the opportunity to focus on both vehicle sales and parts and service sales. potential customers can range from the individual or business...If you want to rent a full essay, order it on our website: Orderessay
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