Question

I need to select three macroeconomic variables in the US that impact the supply and demand of my chosen product/company (Johnson &Johnson's Acuvue contact Lenses). I've decided on INFLATION, UNEMPLOYMENT AND INTEREST RATES. A) are these MACROECONOMIC variables (I'm all confused between macro and micro) and are they too common a choice? B) I need to interpret the trends of these variables over the last three years (2017-2019), including the gathered data and assess how they impact the demand of my product/company.  

I have to include three graphs (one for each year). I can figure that out myself, I think. Line graphs. So it would be on the X/Y axis going left to right, correct.

Citeable sources would be appreciated!

Answer 1

(A) yes, the chosen variables - inflation, unemployment, and interest rates are all macroeconomic variables and should be used. Micro variables will be when you go into industry-specific variables like cost of eye testing, price of other companies contact lens etc. Another macroeconomic variable that should be used is the real GDP growth as this gives an idea about how the consumer income is growing.

(B) For assessing the impact of these variables on the demand/supply of lens, you need to run a regression with all these variables as te independent variables.

(C) Yes, take year on the x-axis (from left to right) and the value of these variables for each year on the y-axis. A line plot will show any trends in the data.