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Product Purchases and the Economy

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.

Click the Assignment Files tab to submit your assignment.

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