What is the economics behind this? Tax cuts increase disposable income and so will increase consumer spending and aggregate demand. Higher demand will lead to increased economic growth, at least in the short-term. Tax cuts boost aggregate demand, leading to higher real GDP. Tax cuts for business increase their retained profit and will enable more […]
Demographic Forces in the Macro Environment Demographic forces relate to people. The name refers to the term Demography. The latter refers to the study of human populations. This includes size, density, age, gender, occupation and other statistics. Why are people important? Because, on the whole, their needs is the reason for businesses to exist. In […]
How to Calculate Break Even Point: The Break Even Formula The textbook formula for calculating your break even point in units of number of guests for a given period of time is: I call this textbook, because it is the universal way to calculate any business’s break even point. We measure “At how many units […]
