Macro Economics

MACROECONOMICS Page 1We read in the newss and hear in the television system system many macro economicalal outlets being tackled routine . Some of which ar : economic growth , inflation , changes in employment andunemployment and address relations with other countries . Wikipedia states that Macroeconomics isa sub-field of economics that examines the behavior of the scrimping as a whole , once only of theindividual economic decisions of companies and industries acquit been summed . Thus , we arelooking at the performance of the economy as a whole and overall view at the different factorsaffecting the market of champion nation . Understanding the theories of macroeconomics is a requirementfor any one to make an economic decision intelligently , most oddly by business possessorsemployees and consumers . Each of thes e players is a decision-maker and mustiness(prenominal) strive the studyof macroeconomics in to understand better the economic environment in which he operatesThe importance of macroeconomics to everyone can be used during the use of economic abridgment to the problems he faces and makes decisions from the plectrons he formulates line of work people /Business ownersBusiness people or business owners are also called entrepreneurs . Byrns and quarry (1992 pointed out that , entrepreneurs pull up put on the line a finicky type of human imagerys , they combine labornatural visions , and smashing to produce goods and go while incurring risks in their require forprofits (7 ) The entrepreneur must make intelligent decisions within a given economic situationThe different macroeconomic plys can help oneself him in qualification a weft based on current rating ofthe Gross National Product or Gross house servant Product , the price stability and model interest ratesVillega s (1987 ) states that The gross national p! roduct is a rough measure of the economic performance of acountry . It is supposed to measure the monetary value of all the goods and go produced in theeconomy during a given period (p . 203 ) If economists pull up stakes forecast an increase in GNP , thenbusiness people could foregoing good sale and profit from their business If GNP is waitress todecline , they must brace themselves for oppose effects like down in the mouth sales and profit . Knowledge onthis issue can logical argument the owners in their future decisions . pomposity also is an importantMACROECONOMICS Page 2macroeconomic issue which directly effects the economic system Decisions on the substitute oflocal raw materials may be one of their best pickaxe for expensive and imported raw materialsEmployeesThe employees are the human resource of the economic society . They are used to producethe outputs called goods and services that the consumers extremity . The man antecedent (either mental orphysical ) provided will be compensated by nets or salaries given by the business owners . Thereare collateral and negative effects in increasing the minimum wage of employees and we mustconsider the power of the employeeswill increase but to the business owners , this will regard as an increase in cost for the same number ofgoods and services produced .

By reducing the cost of production , labor superpower may be decreasedThe least-skilled jobs , those with the lowest marginal contribution to a firm s earnings , must be thefirst eliminated as the resolution of raising the minimum wage floor (Carson , 1983 , 76Consumers or saversT he consumers or savers are individuals who rich pers! on the money or cipher to spoil the goodsand services that are offered in the market to get together their human regards . When the price of acommodity increases , it may not be inflationary . Inflation occurs when the average level of pricesincreases . It can affect a consumer in his buying decision to either stock up the goods or buy at alater date . The consumer s savings will have less purchasing power but to a borrower , the producthe bought on installment is now worth more and he is pay on installment at a lesser sum total Economics is a matter of choice . There are always alternative uses of resources . Whetheryou are a business owner , an employee or a consumer , one must be apprised of the different factorsthat will affect his decision for qualification a choice . Understanding macroeconomics is an effectivetool in the economic analysis in to derive an intelligent economic decisionReference ListByrns , R .T . and gemstone , G .W (1992 . Macroeconomics . New York H arperCollins Publisher , IncCarson , R (1983 . Macroeconomic Issues today : alternate approaches New York : StMartin s PressVillegas , B .M (987 . Managerial Economics . capital of the Philippines : Sinagtala Publishers , IncWikipedia (2006 . HYPERLINK hypertext transfer protocol /en .wikipedia .org /wiki /Macroeconomics . November 7 http /en .wikipedia .org /wiki /Macroeconomics . November 7 , 2006 ...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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