ECON 545(DEVRY) help A Clearer path to student success/uophelp.com ECON 545(DEVRY) help A Clearer path to student suc | Page 65

At first you are reluctant to give investment advice, but then you happen
to read the piece “U.S. Auto Sales Estimates Cut as Confidence Slows
Rebound” on page 634 of the textbook. You suddenly realize that Rick
needs to take a number of macroeconomic variables into consideration
for the expansion decision. You decide to research the economy in terms
of GDP growth rate, interest rates, level of unemployment, the business
cycle, fiscal policy, monetary policy, international trade, and
demographics. You want to provide Rick with the most informed advice
possible.
Situation B
Your neighbor Cindy wants to start a contracting business for installing
solar panels. She has heard of the cost savings that households and
businesses can make each year by installing solar panels on their roofs.
Cindy has also heard of government incentives for installing solar panels.
Being concerned about the environment and wishing to reduce pollution,
Cindy thinks installing solar panels also serves a good social purpose.
But she does not want to risk her life savings on a venture that might not
succeed or become profitable enough. After hearing from you about
taking this course in business economics, she decides to ask you for
advice.
At first you are hesitant to give investment advice. Then you read the
piece “Postal Service Considering Cutting 120,000 Jobs” on page 668 of
the textbook. You realize there are more pieces to the decision than
Cindy is considering. You decide to research the economy in terms of
GDP growth rate, interest rates, level of unemployment, the business
cycle, fiscal policy, monetary policy, international trade, and
demographics. You want to provide Cindy with the most informed
advice possible.