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.
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Product Purchases and the Economy
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My choice to purchase is a new home
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?
Include in in-depth introduction and conclusion
Format Paper with APA guidelines
Cite a minimum of three peer-reviewed sources not including your textbook
This is the book we are using in class:
Colander, D. C. (2013). Economics (9th ed.). Boston, MA: McGraw-Hill/Irwin
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