Operations of Anheuser Busch Companies

This research examines the state of the American economy in early1991, and assesses the potential effects of economic conditions on the operations of the AnheuserBusch Companies, Inc. The initial discussion considers the state of the economy, while the second discussion examines the probable nearterm future of the economy, and the last discussion assesses the potential effects of the economic conditions on the company.

The term business cycle is the name given to shortterm fluxuations in the general level of economic activity, as measured by macroeconomic variables, such as changes in real gross national product.1 Business cycles are defined as a type of fluxuation found in the aggregate economic activity where work is organized mainly in the context of business.2 A cycle, according to this definition, consists of expansions occurring at about the same time in many economic activities, followed by similarly general recessions, contractions, and revivals, which merge into the expansion phase of the next cycle.3 This sequence of changes is recurrent but not periodic. In duration

1J. D. Gwartney, R. Stroup, and A. H. Studenmund, Economics: Private and Public Choice, 4th ed. (New York: Academic Press, 1989), 178.

2W. C. Mitchell, and A. F. Burns, Measuring Business Cycles (New York: National Bureau of Economic Research, 1946), 14.

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