Mr. Campbell asked us to read chapter 10 in our economic books and write a response to what we had learned throughout the reading. In order for microeconomics to be able to study and understand how things fit into the economy at large by studying a particular industry, a particular company, or a particular type of household. They also use this information that the gather to try and perdict when the interest rates will jump and how high they will reach. This reading brought to my understandings that economics is not an easy thing to study because it is changing constantly nothing ever stays the same, so you have to be on top of everything. Prices behave in strange ways and are always changing and you have to know when it is okay to increase a products price and when you need to lower it depending on how well it is selling.
What I hope to learn:
1.) How does the government control inflation. 2.) What causes the economy to experience good times and bad times so often. 3.) What causes inflation.
I think you figured out the most important lesson from an economics class, it is a very complex puzzle! When the legislature passes bills they do studies to see what economic impact they will have on the country, but often there are hidden costs involved. Sometimes the legislation has a huge impact on the economy so the legislature has to be very diligent with their research.
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