Running head: ECONOMIC FACTORS1Economic FactorsInstitution AffiliationInstructors NameStudents NameCourse CodeDateECONOMIC FACTORS2ECONOMIC FACTORSIntroductionThe scenario at hand involves an Uncle Dan who has been growing concern for the past30 years. He now considers changing his commodity markets to invest in housed in homes andshops. He considers the idea viable as the new market is more profitable than the current one andthat he will have met his dream through the venture. As in, any other venture Dan will be facedwith risks and might even incur costs that he had not anticipated. In this paper, I will discusssome of the economic principles that Dan needs to familiarize himself with before venturing intothe new investment. The issues to be discussed will be GDP growth rate, interest rates, level ofunemployment, the business cycles, fiscal policy, monetary policy, international trade anddemographic factors and how these factors might affect his new ventures. At the end of thisdiscussion, Dan will be provided with more enviable advice to take in the same case.GDP growth rateThe GDP growth rate is used in measuring the countrys economic growth rate. It,therefore, measures the countries economic output. By understanding, the economy then aninvestor will be in the position to determine whether to invest. The measuring involvescomparing of the GDP amounts from one quarter to the next. It comprises of four elements thatcontribute greatly ...
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