Product
Purchases and the Economy
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.
Write a 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:
- 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? - How do the concepts of macroeconomics help you
understand the factors that affect shifts in supply and demand on the
price of the product?
Cite
a minimum of three peer-reviewed sources not
including your textbook.
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