The Psychology of Consumer Economic Behavior

In the study of economics, it is important to address how wealth is created and managed in various countries, businesses, and households. For this assignment, you will focus on and interpret economic research as it relates to household decisions. Fluctuations in the real gross domestic product (real GDP), including inflation and deflation, should be factored into an analysis of economic decisions in the household.

For this assignment, you will discuss the following as it relates to economic decisions in the household:

Discuss the 4-stage business cycle, which includes expansion, recession, depression and recovery.

Discuss any other factors that affect household financial decision making (e.g., unemployment, interest rates, business growth).

Discuss how the psychological concept of consumerism relates to household financial decision making. That is, how do you believe the meaning of goods relates to a family member’s role in society?
Additionally, please choose 2 concepts from the list below and incorporate them into your discussion regarding what type of impact these concepts have on the typical American family household. Be sure to discuss how your particular household is affected by this and any other factors discussed in this assignment.
Consumer confidence
Technology
Consumer power model

Theory of mental accounting
Theory of reasoned action
The media
Message framing
Lifestyle
Quality of life
Regional subcultures
Standard of living
Socialization
Antitrust laws
Consumer movement
Depression
Rational self-interest