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Essay / Research Paper Abstract
This 4 page paper uses Southwest Airlines as an example to demonstrate what impact macro economic factors will have on the company. The factors considered include changes in the GDP, level of unemployment and inflation measures by the consumer process index; CPI. The bibliography cites 4 sources.
Page Count:
4 pages (~225 words per page)
File: TS14_TEecinflu.rtf
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Unformatted sample text from the term paper:
to understand the impact as this will enable the company to plan future strategy to match the conditions. The real gross domestic product is a leading indicator and this
will indicate the health of the general economy. It is often stated that there needs to be growth in an economy but that this growth should not be too fast
as unbridled growth can lead to high inflation levels. The main concerns should be for the movement in the GDP. The real gross domestic product is a measure of the
production in the country which will reflect the demand in the economy and for exports. If there is growth there will be an increase in the GDP, where there is
real growth this is growth in the GDP level above inflation, so the actual output has increased this indicates there is growth (Nellis and Parker, 2000).
Where there is growth in an economy this means there is increasing demand to stimulate or take up that demand, or, if the increase is due
to exports it will mean there is increased income. In either case there is a growth in income and as such the demand for the services may increase if they
are demanded, but at the very least there is no economic pressure on consumers to reduce travelling. However, other factors also need to be considered as a growth is GDP
is not always evenly spread in an economy, and may be limited to only certain areas or specific sectors (Nellis and Parker, 2000). If we look at the impact
of the unemployment rate on Southwest Airlines, this can have a major impact on the demand for the airlines services. For air travel there is a high degree of price
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