Automotive Benchmarking

Running head: MACROECONOMIC IMPACT ON logical argument OPERATIONS Introduction Understanding macroeconomics may help managers make better decisions at bottom their organizations. This knowledge go forth help them to understand pricing, analyze their costs, and visualize demand (University of Phoenix, 2006). Organizations that care about how the strength of the economy force affect their ability to raise prices or how it might subside the price of goods and services they must buy will pay close attention to fiscal and monetary policy (University of Phoenix, 2006, p.1). The avocation paper will contend the tools used by the national Reserve to control the money supply. Because organizations should not only nerve at the economy as a whole further also fill up into consideration industry specific knowledge, it will accordingly take a look at the self-propelling industry specifically and show what actions chamberpot be interpreted to maintain profitability as well as discuss best practices and how to apply them. Tools used by the national Reserve The Federal Reserve uses both fiscal and monetary policy in high society to influence the economy. Both are aimed to fall upon replete employment, and encourage economic growth (McConnell and Brue, 2005).

Fiscal policy also aims to control inflation while monetary policy looks to achieve price level stability. Declines in aggregate demand gutter lead to a recession and high unemployment, the political relation throw out through fiscal policy use changes in political sympathies spending and tax collections to influence the economy (McConnell and Brue, 2005). Increases in government spending increase aggregate demand and equilibrium gross domestic product as do decreases in taxes. In theory use fiscal policy could cure any recession. However at that place are problems with this model. First, timing can be off, it may take awhile for the change in the economy to be realized, then once realized it takes time to put this policies into place. Politics can also affect fiscal policy, a candidate may choose a tax cut in order to... If you want to get a full essay, order it on our website: Orderessay

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