Assignment:
1. Oil prices have dropped significantly over the last several years. Do some research on the internet to find out why prices have fallen so much. Give an example of a type of business that has benefited from the decrease and an example of the type of business that has been damaged as a result of the price decrease. Explain why. (Supply and demand concept)
2. In your own words, describe the three key economic indicators (GDP, Unemployment rate, Price indexes) that help businesses understand what is happening in the U.S. economy. What typically happens to the indicators during times of strong economic growth and why?
3. How do each of the two fiscal policies of the government (taxing and spending) impact business activity?