Economic Growth

A growing economy increase employment opportunities, stimulates business enterprise and innovation. A sustained economic growth is fundamental to any nation wishing to raise its standard of living and provide a greater well being for all. Gross Domestic Product (GDP) is the monetary value of all final goods and service produced over a year. It is the total value of production within the economy. The total value of production is the total value of the final goods or services less the cost of intermediate goods purchased. Gross Domestic Product (GDP) at market prices (nominal GDP) measures the value of total production at the present price level.

Gross Domestic Product at market prices measures both the total physical volume of goods and services produced and the prices at which these goods and services are sold. Gross Domestic Product at market prices has considerable usefulness when measuring the growth rates and relative importance of different industries or sectors within economy.

In the present business, environment governments have the power to change and make laws, having a major role and influence on the business environment. There are three levels of government, federal, state, and local. The federal government has power over such areas as; company law, income tax, and trade. State government has power over pollution, price controls, and state courts. However, the local government has power over rates, building approvals and zoning. Through zoning, the local government can decide where businesses are located, or how many similar businesses should be built in a particular area. The power of the government can have direct or indirect influences.

Fiscal Policy can be explained in many ways, for instance the fiscal policy is the use of the government budget to affect an economy. When the government decides on the taxes that it collects the transfer payments it gives out, or the goods and services that it purchases, it is engaging in fiscal policy.

The...