ECONOMICS

Economics

Economics

Q1: What is the role of services in our economy?

Answer: Economics measure the growth rate of a country in real terms. Economic growth was an increase in the number of real output. It refers to an increase in the annual output of goods and services. The most common measure of GDP is Economic growth figures should be adjusted according to inflation. Nominal G.D.P. not adjusted for inflation, while real GDP be. Economic growth is also a long-term expansion of productive capacity of the economy. Sustained economic growth should lead to an increase in real living standards and employment growth.

Economic recession and the economic boom are best described by the diagrams of the economic cycle, as shown below.

Q2: What are the nature of services and what is the strategic service vision and why is it so important to understand the interrelationships between the target market, service market, service concept, operations strategy, and the service delivery system in successful services?

Answer: Gross domestic product (GDP) is the overall value of all final goods and services produced within a country during a particular period valued at prices in that period. This significant indicator of the method in which an economic system is functioning can be divided into four wide components, based on who purchases the final goods and services. Components of GDP include personal consumption expenditures, gross private domestic investment, government purchases, and net exports.

GDP can be measured in nominal terms, using current dollar prices, or in real terms, by adjusting nominal GDP figures each year to eliminate the effect of changes in prices. A price index called the GDP implicit price deflator is used for this purpose.

As we know both real and nominal GDP grows over time, but it is also true that GDP shows cyclical behavior: it rises for a period of time then falls for a period time. This cycle of changing growth and contraction in GDP is known as the business cycle. We calculate a business cycle by changes in real GDP, so we are focusing only on changes in output. The business cycle has four parts: crest, contraction, trough and expansion.

Q3: How do we approach in an organization managing the service encounter to be sure we achieve internal and external customer satisfaction? How do we go about developing new services?

Answer: The peaks are high points for real GDP, while the troughs are low points. The period between a peak and a trough is called a contraction, or a recession. Officially, recessions are periods of declining real GDP that ends at least 6 consecutive months (two quarters). Very serious recessions are known as depressions. The phase between a trough and a crest is known as an expansion, which is characterized by increased real GDP.

The roles that government bodies play in determining national fiscal policies and they have large effects on the economy's production and employment are as follows:

Department of Treasury manages and constructs the fiscal policy and Implements fiscal policy

Office of Management and Budget develops and analyze fiscal policy

Office of the ...