ECON545: Project 2�Macroeconomic Analysis

Name: ECON545: Project 2�Macroeconomic Analysis
Brand: DeVry University
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Author: Samuel Clark

Applied analysis of macroeconomic principles and indicators

Samuel Clark

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Running head: ECON545: Project 2—MacroeconomicAnalysis 1
ECON545: Project 2—MacroeconomicAnalysis
Name:
Professor:
University attached:
Date:
Cindy, an entrepreneur planning to start a solar panel installation business in California, is
considering various macroeconomic factors that could impact her new venture. Given the
current economic environment, analyze how the following macroeconomic areas will
influence Cindy’s decision to invest in her business:
1. GDP growth rate
2. The business cycle
3. Fiscal policy and the level of unemployment
4. Monetary policy and interest rates
5. International trade
6. Demographics
In your response, provide a detailed analysis of each area, supported by relevant data and
examples, and offer specific recommendations for Cindy to consider in order to optimize her
business strategy. Be sure to reference credible sources and include appropriate charts, data,
and citations.
Word Count Requirement: Your response should be between 1,500 to 2,000 words, with
clear explanations and a logical structure to support your arguments.

ECON545: Project 2—MacroeconomicAnalysis 2
2
Each of the scenarios has a list of Macroeconomic areas you are to address, with sources, in
your answer. Briefly you are to research and show how these apply to your scenario: GDP
growth rate (20 points), the business cycle (30 points), fiscal policy and level of
unemployment (50 points), monetary policy and interest rates (50 points), international trade
(40 points), and demographics (20 points).
Answer –The new business thought of Cindy is exceptionally imaginative however being a
shrewd representative Cindy ought to search for all the expansive macroeconomic conditions
in the U.S economy where he is wanting to start her contracting business for introducing sun
powered boards. Cindy has not just to search for the growth prospects of Solar vitality gear
which will make utilization of sun based vitality to tackle and proselyte it into different sorts
of vitality which can be utilized for everyday tasks work. Being an understudy of financial
matters, I might want to give him couple of thoughts and some expansive points of view
which Cindy ought to be dealt with before contributing such a colossal sum at one instance.
In a testing economy and an exceedingly focused business area, Cindy might reliably make
new wellsprings of financing that could be generally received all through the sun oriented
industry. The San Mateo, California-based organization as of now is known for its inventive
housetop renting project, dispatched in 2008, which served to empower the sunlight based
private market by for all intents and purposes wiping out the forthright expenses of
establishment. Cindy's new organization might likewise offer institutional financial
specialists another chance to buy a few bonds which has been secured by its clients and
business force contracts. It would need to bring capital up so as to fund the setting up of the
organization in California.

ECON545: Project 2—MacroeconomicAnalysis 3
3
The New Year has brought good faith among U.S. sun powered organizations, from
producers to venture designers, with some of them touting strong 2013 money related
execution and guarantee to improve in 2014. A portion of the sun based organizations have
produced great measure of incomes a year ago. Also, Federal, state and nearby governments
offer amazing sun powered expense attributes and discounts to urge property holders to
change to renewable vitality to bring down their vitality utilization and switch to sun powered
force. The measure of the discount endowment differs by project, yet some are sufficiently
liberal to conceal to 30% of your sun oriented force framework cost. In this manner, it would
be gainful for Cindy to set up such sun powered establishment organization
The national government permits you to deduct 30% of your sunlight based force framework
expenses off your elected duties through a speculation assessment credit (ITC). In the event
that you don't hope to owe charges this year, you can move over your credit to the next year.
Such colossal impetuses and advantages from the side of government will fulfill the social
soul of Cindy as she gets a kick out of the chance to work for the general public. These
motivating forces significantly bring down the expense of a sun oriented force framework or
vitality effectiveness venture. These duty credits and refunds frequently make sun based
power less lavish than force from the service organization.
We will start from the graph of the U.S economy, the current GDP volume and the dedication
by every section. The swelling rate and the unemployment rate would similarly have mind
blowing impact on the improvement and the operations of the business in U.S. with grungy
petroleum costs over $120 per barrel; it is no huge astonishment that gas expenses are so high.
Oil expenses impact gas, and in addition everything that twists around gas as well. Foodstuffs
are more lavish, anything that is passed on by a semi-truck is higher than and despite
something as clear as asking for a pizza is costing to some degree all the more these days

ECON545: Project 2—MacroeconomicAnalysis 4
4
Thusly, the value flexibility of different merchandise is higher than the value versatility of
interest for Gasoline. Subsequently, Cindy can't keep much higher costs for his items. It
would not be fundamental that everyone why should going visit the station would buy the
merchandise from Cindy's store.(Bank, World Development Indicators, 2014)
Oil business companies are having some major difficulty staying aware of the quick
development of India and China. In the event that these patterns proceed with, it is likely that
oil costs could reach $200 per gallon or more.
Oil costs are additionally influencing whatever remains of the economy. With individuals
spending quite a lot more cash on gas and staple goods, they are spending a great deal less on
different items. As these proceeds with swellings is turning into an always developing risk.
The restricted spending plan of the individuals ought to be assigned as productively as would
be prudent. Under these conditions, it is best to add to some option wellspring of vitality so
that oil and gas cost increment could stop. At first, Cindy could experience the ill effects of
misfortunes because of less request of such boards at home and workplaces, however once it
get to be prevalent among individuals because of its expense diminishment in long run, Cindy
would have the capacity to acquire great measure of benefits.
The administration has developed a monetary boost bundle to help make up at high
gas costs furthermore to help fortify the economy. By conveying free cash, they are trusting
that individuals will run out and begin spending, notwithstanding, late surveys demonstrate
that a great many people will be utilizing the free cash to pay charges or to contribute. The
aggregate demand in the economy will build which will further push up the uses by the
individuals on the Gasoline and its products.(Fed, 2010)
The demand of solar products would depend on the demand of the Gasoline by the consumers.
Higher the demand of Gasoline more will be the chance that people will switch over to solar

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DeVry University

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Economics

ECON545: Project 2�Macroeconomic Analysis

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