The study of macroeconomics is an academic discipline that examines the performance, structure, behavior, and decision-making of an economy as a whole, rather than individual markets. Society as we know it is an ever changing array of tendencies and activities that can be classified into a series of numerical results. There are several different macroeconomic scenarios that the individual consumer is presented; this paper will discuss a few of these. First, the simple act of obtaining household items such as groceries can have many fundamental economic concepts. Secondly, in today’s business environment, where corporate reorganization causes massive layoffs, a ripple effect can be felt throughout the economy. And lastly, this paper will discuss…
of 2007-08 demonstrated that macroeconomics and macroeconomists failed as a social science and a profession.
The objectives of macroeconomics as a social science are twofold: to understand the complex workings and drivers of the global economy through models and predict the economic changes in the near future. Successfully macroeconomists not only grasp the intricate webs of our economy but also are able to advise on policies that would ensure economic stability and prosperity.
The crisis of…
The results we get from macroeconomic tools are bound to make errors. These errors can sometimes be minimal or they can be drastic. Some of the tools used in macroeconomics are GDP (gross domestic product), Stock market, unemployment rate and money supply changes. These are the main and most commonly used tools when collecting results to predict economic realities. These tools can be challenged and be subject to error as a result of their flaws. There are many reasons how these tools can cause…
Macroeconomics deals with the performance, structure, behavior, and decision making of the economy as a whole. The three issues that I identify in this economic scenario that should be addressed in the next one to two years to ensure the economy continues to grow is unemployment rate, higher GDP, and lower the national debt.
The Unemployment rate plays an important role in the economy in general in order to grow. When the economy is in poor shape that results in insufficient jobs which causes…
As we learned in chapter six and seven of macroeconomics textbook by Krugman & Wells, GDP is a measure of the wealth of a country. It is an abbreviation of the Gross Domestic Product. GDP is the value of all outcome of goods and services in a country during a particular time. GDP shows how wealthy a country is and how much the economy was active during a given period. “GDP is important because it is a leading indicator of a country 's economic health. It gives economists an idea of the nation…
April 22, 2016
A Look into the Principles of Macroeconomics: Project Paper
Q: What is the gross domestic product?
A: Gross domestic product (GDP) is the total market value of all final goods and services
produced within an economy in a given year. This is also commonly referred to as total output (O 'Sullivan, 100).
Q: Do increases in gross domestic product necessarily translate into improvements in the welfare
of citizens? Explain your answer.…
1. What is the difference between micro and macroeconomics? Give an example of a microeconomic phenomenon and an example of a macroeconomic one.
A) The difference between micro and macroeconomics is that microeconomics deals with how individuals and firms make decision in the face of scarcity and the impacts of the decision on the market. Hence, microeconomic focus on a part of the economy of a country. While macroeconomics deals with how a nation makes a decision in the face of scarcity and…
In this paper I will summarize the key developments in macroeconomics history. In particular I will discuss the similarities and differences between Keynesian and classical economics, specifically how each one handles issues of unemployment. I will also discuss what new developments, starting in the 1980s, have changed macroeconomic thought.
Before the great depression of the 1930s, the classical economic views were what most people concerned with economics went by. This classical view…
A reduction in interest rates is an expansionary move in the sense that it makes borrowing cheaper. A decrease in interest rates, therefore, will lead to an increase in investment but in the process leading to a reduction in the levels of saving since there will be a reduction in the incentive to save. The effects of this action will affect both the consumer and the producer as follows:
Econ 209: Principles of Macroeconomics
November 11, 2017
1. Economic Concepts and Issues
a. Wage Growth Increase
b. Janet Yellen’s Job Security and The Fed Funds Rate
c. Donald Trump’s Border Tax
2. How the Economy will be effected and how these issues will be addressed.
a. For the first time since 2009 the wage growth is growing faster than it ever has showing promise for President-elect Donald Trump and the labor market. Ever since the recession the economy has been…