00:01
Identify three macroeconomic variables in the united states that impact the supply and or demand of the product or service produced by the company you selected microeconomic or macroeconomic analysis papers.
00:13
Interpret the trends of the three selected macroeconomic variables for the past three years and evaluate how these three trends or these trends will like the impact the supply and demand of your chosen product or service as well as the financial performance of your chosen company.
00:30
So one macroeconomic variable is that inflation erodes.
00:38
If inflation affects things and high inflation decreases our wealth and it reduces real income.
00:45
As such inflation reduces purchasing power.
00:48
For example, if it used to cost me a dollar to buy something and it now costs me $1 .5, my dollar doesn't get me as much as it used to.
00:59
A fall in purchasing power results in a drop in the demand for goods and services sold by companies.
01:06
Therefore, high inflation will reduce demand and low inflation will increase demand.
01:13
So inflation erodes, it affects wealth, real income, and purchasing power.
01:32
Next, high unemployment.
01:40
If we have high unemployment rates, there is a loss of income for many people...