Macroeconomic in the US Assignment Example | Topics and Well Written Essays - 500 words

Macroeconomic in the US - Assignment Example At the moment, one of the major economic issues that the United States economy is facing is an increasing number of unemployed individuals. Though there have been some improvements in creating more jobs, the unemployment rate remains high in the United States. For the last ten years, the United States unemployment statistics have revealed that the unemployment rate is still high. In a significant part of 2003, the unemployment level was below 6 percent. Throughout 2004, the unemployment level was still below 6 percent (Gliksberg, 2013). After the fiscal crisis in 2008, the unemployment level increased severely making many Americans to be jobless. As stated by the United States Bureau of Statistics, the unemployment level was 7.3 percent in November. Due to this, necessary policies need to be adopted so that to bring the unemployment level to sustainable levels. There are different macroeconomic solutions that may assist in helping solve the present unemployment issue in the United States economy. These solutions are both monetary and fiscal policies, which help in maintaining the stability of the economy (Li, 2013). As the present level of unemployment is essentially recurring, it is vital to consider executing expansionary monetary and fiscal policies. An expansionary financial policy may be implemented correctly by taxation, government purchases and also transfer payments. The United States government needs to increase its spending on healthcare and infrastructure. For example, when roads are built, there will be a high demand for materials. This will create jobs for engineers, drivers among other individuals. When taxation is reduced by the government, there will be an increase in disposable income for households. This is reflected directly by increased consumption and will lead to a demand increase (Li, 2013). In meeting this demand in crease, firms will be needed to employ more workers, therefore, reducing the unemployment

Financial Decision Making Essay Example | Topics and Well Written Essays - 1500 words - 1

Financial Decision Making - Essay Example From this, financial ratios could be compared with competitors and be able to understand its strength and weaknesses. Using the financial statements of Abel Athletics, the interpretations of ratios are arrived at and described after each table. 3. Net profit margin. NPM measures how much out in every dollar of sales in a company is kept for earnings. A higher profit margin shows the company is profitable and is in better control of its costs as compared to its competitors.(Answers.com) Again here, Abel keeps 26.4% of its sales for earnings, again higher ratio than the industry. 4. Gross profit margin. The table shows that after deducting the goods sold, Abel has enough funds to support other expenses, such as 58.2% is left for operating costs and profit. Abel also has higher GPM than the industry index. * In terms of profitability based on ROA, ROE, NPM and GPM, Abel Athletics show better performance than the industry index. It is a good indication of growing company for the first year of operation. 1. Quick ratio: This is a measure to find out how Abel will be able to pay its maturing obligations without necessarily selling inventory and a higher ratio is considered better. If this ratio declines over time, or it falls below the benchmark index of the industry, this means the company may be investing too much capital on inventory, or it has taken up too much short term debt. (Investorwords) Abel shows a low quick ratio which is below 1, but still way above benchmark index. 2. Current ratio. This is also similar to quick ratio which consider current assets divided by current liabilities. A ratio of above 1 shows strength, and in this case Abel has more assets to cover obligations and is more liquid than the industry. 3. Net working capital ratio is a measure to find out if company is being able to pay off its short term liabilities. Abel shows a positive working capital which is much higher than the industry bench