Analysis on Industry Growth Pattern during Recessions and Expansions in Relation to GDP Growth

Gdp represents the total output and the total income in the economy. The source of GDP is the production by various producers and industries. As such, each industry has a share in GDP. This means that, if the industry grows, then its share as a percentage of GDP grows as well. Moreover, when GDP grows, income level in the economy increases. As a result, some industries in the economy expand when GDP and the income level rise. For example, industries that produce luxury commodities such as brand-name shoes, vacation packages, organic food items, movie theaters, expensive coffee, and so forth, grow and expand when household income rises. Other industries such as dollar stores, thrift shops, fast food restaurants, generic brands, and public transportation expand when the household income declines.

For this assignment, you need to choose an industry and then analyze the growth pattern of that industry during periods of recession and periods of expansion. Examples of industries that you could choose from include auto, airline, higher education, food, healthcare, agriculture, housing, social media, fast food, sport, gaming, pharmaceutical, and movie industry, or whatever other industry you prefer. Remember, you are analyzing the growth pattern of the industry, not a specific commodity. The goal of this assignment is to

1. Analyze the growth pattern of a specific industry;

2. Identify the sources of the growth; and

3. Determine the relationship between GDP growth and the growth of that industry.

Your research needs to be structured with consistent and clear thoughts. It also needs to be supported by facts and data. Your results need to be based on solid facts. Your conclusion and opinion need to be thorough and based on your findings and understanding of GDP, the sources of GDP growth, and the growth pattern and sources of your industry.

Provide an overview of the industry, its size (market share), its output level, its growth pattern, its employment share (how many people does it employ), and key challenges and opportunities this industry faces.

Obtain data from at least three credible sources (not Wikipedia) to provide facts about the industry output over 10 years and the sources of the growth (changes in regulations, changes in consumption, changes in investment, changes in government purchases, or changes in net export).

Obtain data about changes in GDP growth rate for the same period (10 years).

Use tables, graphs, and figures to support your argument.

Here, you need to discuss the sources of the growth pattern and how and why these sources affect the growth or decline of the industry. In addition, discuss the relationship between GDP growth rate and the growth rate of the industry. Moreover, discuss the effect of the growth of the industry on the growth of GDP, and/or the effect of GDP growth on the growth of the industry. Make sure you discuss the effect of different stages of the business cycles (recession and expansion) on the industry.

Conclusion 

Provide your own final thoughts, opinion, and understanding of the different forces that impact the industry. In addition, state your thoughts about the future of the industry and provide recommendations for expanding it.

Reference List

Use at least three professional sources to support your argument. The references need to be in APA format. To learn more about APA format, click on the link below.