1. Copyright © 2007 South-Western. All rights reserved. Chapter 3 Assessing Economic Conditions

2. Portion of Graphic from pg 72 will go here Copyright © 2007 South-Western. All rights reserved. Learning Objectives Assessing Economic Conditions GrowthInflation Government Interest Rates Market Prices

3. Assessing Economic Conditions Portion of Graphic from pg 72 will go here Copyright © 2007 South-Western. All rights reserved. The Key Decisions in Running a Business

4. Assessing Economic Conditions Portion of Graphic from pg 72 will go here Copyright © 2007 South-Western. All rights reserved. Economic Growth Growth Inflation Interest Rates Market Prices Government Weak Strong Recession

5. Assessing Economic Conditions Portion of Graphic from pg 72 will go here Copyright © 2007 South-Western. All rights reserved. Growth Indicators Growth Inflation Interest Rates Market Prices Government G.D.P. Production Aggregate Expenditures Spending

6. Assessing Economic Conditions Portion of Graphic from pg 72 will go here Copyright © 2007 South-Western. All rights reserved. Unemployment Growth Inflation Interest Rates Market Prices Government Structural Frictional Cyclical Seasonal

7. Assessing Economic Conditions Portion of Graphic from pg 72 will go here Copyright © 2007 South-Western. All rights reserved. Inflation 198519952005 $ $$$$$ Growth Inflation Interest Rates Market Prices Government

8. Assessing Economic Conditions Portion of Graphic from pg 72 will go here Copyright © 2007 South-Western. All rights reserved. Types of Inflation Growth Inflation Interest Rates Market Prices Government Demand-PullCost-Push

9. Assessing Economic Conditions Portion of Graphic from pg 72 will go here Copyright © 2007 South-Western. All rights reserved. Interest Rates Growth Inflation Interest Rates Market Prices Government

10. Assessing Economic Conditions Portion of Graphic from pg 72 will go here Copyright © 2007 South-Western. All rights reserved. Interest and Revenue Growth Inflation Interest Rates Market Prices Government Interest Rates (%)

11. Assessing Economic Conditions Portion of Graphic from pg 72 will go here Copyright © 2007 South-Western. All rights reserved. Determining Market Prices Growth Inflation Interest Rates Market Prices Government Insert Exhibit 3.4 (only top portion)

12. Assessing Economic Conditions Portion of Graphic from pg 72 will go here Copyright © 2007 South-Western. All rights reserved. Determining Market Prices Growth Inflation Interest Rates Market Prices Government Insert Exhibit 3.4 (only bottom graph portion)

13. Assessing Economic Conditions Portion of Graphic from pg 72 will go here Copyright © 2007 South-Western. All rights reserved. Demand Schedule Growth Inflation Interest Rates Market Prices Government Price Quantity (S1) (D1) (D2) P1 = $ 2,000 P2 = $ 2,500

14. Assessing Economic Conditions Portion of Graphic from pg 72 will go here Copyright © 2007 South-Western. All rights reserved. Supply Schedule Growth Inflation Interest Rates Market Prices Government Price Quantity (S1) (D1) (S2) P1 = $ 2,000 P2 = $ 1,500

15. Assessing Economic Conditions Portion of Graphic from pg 72 will go here Copyright © 2007 South-Western. All rights reserved. Influencing Market Prices Growth Inflation Interest Rates Market Prices Government Production Expenses Consumer Income Consumer Preferences ) ) ) ) ) )

16. Assessing Economic Conditions Portion of Graphic from pg 72 will go here Copyright © 2007 South-Western. All rights reserved. Monetary Policy Growth Inflation Interest Rates Market Prices Government FOMC The Fed Money supply Interest Rates

17. Assessing Economic Conditions Portion of Graphic from pg 72 will go here Copyright © 2007 South-Western. All rights reserved. Fiscal Policy Growth Inflation Interest Rates Market Prices Government Excise Tax Personal Income Tax Corporate Tax Budget Deficits

18. Assessing Economic Conditions Portion of Graphic from pg 72 will go here Copyright © 2007 South-Western. All rights reserved. Government Influence Growth Inflation Interest Rates Market Prices Government Insert Exhibit 3.8