Each question at least 250 words.
In general, the vitality of a firm is closely dependent on the health of the overall economy. A growing economy and the favorable macro variable contribute significantly to the successes of businesses. Such a favorable macro environment hence, increases businesses investment creating more jobs resulting in higher production, sales and higher profit. Choose and discuss the impacts of two of the macroeconomic variables on business environment.
Discuss different types (frictional, structural and cyclical) of unemployment and the impact of each type of unemployment on businesses. Are all three types of unemployment undesirable? Explain.
Macroeconomic environment influences the performance of a firm and the magnitude of influence is mostly tied to the stage of a business cycle. Discuss macroeconomic environment associated with recessionary and inflationary periods and how such environments affects businesses.