Final answer:
The assessment of overall demand is one part of economic analysis, involving a demand and supply model, consideration of price/wage flexibility, and determining new equilibriums after changes. This can precede or follow other analytical stages depending on the context and timeframe.
Step-by-step explanation:
The assessment of overall demand is not necessarily the last stage in economic analysis; rather, it is a critical component that can occur at various stages. First, one must develop a demand and supply model that illustrates the market conditions prior to an event. This involves considering if the economic focus is on long-term or short-term effects.
Second, it's essential to determine if prices and wages are sticky or flexible, which affects how quickly markets can adjust to changes. After modeling the original demand and supply, Step 2 involves analyzing how specific changes, such as shifts in consumer tastes, affect either supply or demand. For instance, a change from traditional to digital news sources would shift the demand curve.
The final step in economic analysis includes a comprehensive assessment by combining both the supply and demand shifts to determine the new equilibrium price and quantity. Whether economic output is determined by aggregate demand or aggregate supply usually depends on the timeframe being considered, with demand often driving the short-term and supply affecting the long-term output.