Question

  It is the Season of Giving and Joy in the United States of America. How...

 

It is the Season of Giving and Joy in the United States of America. How do you think the retailers will do this season? Why do you think so? What factors will impact the market for Winter Holiday Shopping in the United States?
please include a graph

Homework Answers

Answer #1

This is seasons of giving and joy in US. Thus, it is likely to give rise to the demand in economy. Put it in simple words, demand pressure will push up price level.

Following factors would influence demand:

  • Consumer confidence is very high due to growth rate.
  • Unemployment rate is lowest in last 49 years, thus demand shall be high.

Following is graph:

Due to positive confidence and rise in wage rates, there shall be shift in AD to right. Thus, both output and price shall experience rise.

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