You’ve been debating on
making a purchase for yourself. This is a product you’ve wanted for a
while, but one that requires budgeting because you will be making monthly
payments.
Select a product in which the demand for the product is clearly
affected by the strength or weakness of the overall economy such as new homes,
cars, appliances, smart phones, etc.
WRITEa 1,050- to 1,400-word paper in which you address the
FOLLOWING:
·
Identify and define two economic indicators that reflect
the strength of the economy (e.g. real GDP, unemployment rate, inflation rate,
interest rate, housing starts, etc.).
·
With these economic indicators in mind, how has the economy
affected the demand for and supply of your selected product over the last 2
years?
·
What was the impact on the supply of the product and the impact
on the demand for the product?
·
Explain the impact on the price of the product and your
decision on whether or not to buy the product.
·
Include responses to the following:
o How might you apply what you learned about
supply and demand to your work place or your understanding of the product you
are considering purchasing?
o How do the concepts of macroeconomics help you
understand the factors that affect shifts in supply and demand on the price of
the product?
