Case Study Essays (363 words) - Public Finance, Recession

Case Study The three business indicators are inflation, gross domestic product (GDP), and the labor market. The four phases of the business cycle are contraction, trough, expansion and peak. Contraction is when the economy stars slowing down. Usually a bear market also happens. Trough is when the economy hits the bottom. This is called a recession. Expansion is when the economy starts to grow again. Usually the follows a bull market. Last is the peak stage. This is when the economy is starting to be under control again. Inflation is under control, this is a great thing. The United States is in the expansion phase. We just came out of a recession, we are finally getting our feet back on the ground and businesses are starting to boom again. The government manages the economy by using the fiscal policy. The fiscal policy is what the government uses to determine what the appropriate level of taxes and what the spending should be. The fiscal policy promotes an overall economic growth and stability. For the most part the United States has moved from the fiscal policy the monetary policy. Have you ever tried to think about where all of your clothes come from, and how the United States does business with all of these different countries? I looked at my clothes and for the most part, they either came from, China, Mexico or the United States. You can also look at the different restaurants in your community. I live in Hagerstown and there are no ethic restaurants in my community. In the areas around me there are places in Winchester and Cambridge City. Winchester has El Carreton. This restaurant is family owned. In Cambridge City, there is El Cazador. This is also family owned. I believe this shows that in this area family restaurants are well off. This helps with globalization because they can bring their ethnic foods to our area. This brings in their food and drinks to the United States. Globalization is all around us. While I think that we can do a better job at it, there are glimpse of it all around. Its in our clothes and the business that we support.