outputPrice = Consumer Price Index for All Urban Consumers: New Vehicles in U.S. City Average
inputPrice = Producer Price Index by Industry: New Car Dealers: New Vehicle Sales
outputPrice = Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity The output price at 10-Year Constant Maturity show a variety of levels in the graph. The output price is a result on the input price in the market. Taking a closer look between 2020 and 2022, a major drop occurs during the beginning of the 2020 recession due to the global pandemic. Before the pandemic you can see the output price at the beginning of 2019 was 2.7, but within a few months of 2020, the output price drops to a low of .6. As 2022 approaches, the value for outputs have started to increase and the price for goods have become rapidly expensive.
inputPrice = Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity The input price are the price of goods that a business purchases to carry out production. The input price at a 3-Month Constant Maturity shows the cost to make goods declined rapidly during the 2020 recession. At one point the input price was higher than the output price during the decline around 2020. The value of inputs reached a low of .1. As 2022 continues, the value has drastically improved to 2.7 in value.
outputPrice = Producer Price Index by Commodity: Machinery and Equipment: Miscellaneous Instruments
inputPrice = Producer Price Index by Commodity: Metals and Metal Products: Nonferrous Metals
Make your argument based on your analysis of the given charts.
Over the course of the graph, the margin between inputs and outputs vary. From 2014-2016 the space between input and output was enough room where the Bank of New Hampshire was collecting a good amount of profit. As long as the input prices lie below the out price, the business tends to thrive in profit. AS the 2020 recession creeps up, we begin to see the price in inputs increase and when this occurs the price for outputs tends to rise as well. With this happening, the prices for more than goods increase such as mortgages, interest rates, etc. People will not borrow money if they cannot afford to pay it back in full over a certain period of time. The profit margin took a toll before the 2020 recession where input prices were higher than output prices. The profit margin today is closer than it has been in early in the graph, but prices are at a high of 2.7 and the profit rolling in has decreased.