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Gross Domestic Product essay
← Data on Visits and ExpenditureCosmetics Company →

Gross Domestic Product. Custom Gross Domestic Product Essay Writing Service || Gross Domestic Product Essay samples, help

The main macroeconomic variables are Gross Domestic Product (GDP), unemployment rate and inflation. They are used by countries to determine their economic status and international competitive ability. The macroeconomic variables can be forecasted to allow the government to make prior arrangements to reduce their effects and probability of experiencing negative trends from them. High rate of unemployment is harmful to the economy as well as high rate of inflation. On the other hand, high GDP in a country is beneficial (Forni, Hallin, Lippi & Reichlin, 2000).

To forecast the variables in the US, we can use companies and determine how much they produce per year, how many employees they absorb per year and how much foreign income that they give to the country. The income from other countries would amount to GDP, while employment rate in a company ensures that more people are absorbed into the employment system.

Corning Glass is an international company that deals with glass manufacturing exporting glass to all parts of the world. One of their biggest product is the windscreen that was lighter and harder and could not shatter into many pieces thus reducing injuries. Export of products from the company leads to increase in GDP (den Reijer, 2006). Therefore, we can accurately estimate future trend in GDP if we forecast the products the company would export at a given period.

To forecast unemployment rate in a state, we can use data from the company. The growth rate and expansion rate in the company can be adequately compared to the rate of graduation of qualified personnel from learning institutions. A forecast of expansion can be used to determine the rate of unemployment. It is therefore evident that one big organisation such as Corning Glass can be adequately used to forecast macroeconomic variables when critical analysis of the economic trend of the organisation is done.

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