An Overview of Small Business Economics

Discuss how each of the following economic indicators may affect the environment for the launching of your initial public offering (IPO).Overall, how soon

should you launch a public offering given the cyclic nature of the economy?(50 points) (A 1 ½ -page response is required.)

Nominal Gross Domestic Product (NGDP):The nominal gross domestic product is increasing at the rate of 2.6% annually, while the Real Gross National Product

(RGNP) is rising only 2.3%.
Consumer Price Index (CPI):The Consumer Price Index has been rising at a fraction of a percent per quarter for each of the last four (4) quarters.
Discount Rate:The Federal Reserve has announced a reduction in the discount rate of 0.5% and hinted that further cuts may be forthcoming.
Unemployment Rate:The rate of unemployment is holding steady, although the rate of new claims is declining somewhat.

Sample Solution