Finance Is Based On Economics

Course Description Principles of Macroeconomics deals with consumers as a whole, producers as a whole, the effects of government spending and taxation policies, and the effects of the monetary policy carried out by the Federal Reserve Bank. Macroeconomics is concerned with unemployment, inflation, and the business cycle. Text Required: Macroeconomics, Roger A. Arnold, 7th Edition, 2005 Recommended: Macroeconomics Study Guide, Roger A. Arnold, 7th

Microeconomics deals with the individual parts in the economy and how they relate to each other. Macroeconomics deals with the totals of these parts in our economy

Macroeconomics is the study of the behavior of an economy at the aggregate level. Macroeconomics considers the industrial sector, the services sector or the farm sector, but not specific parts of any of these sectors. The factor studies might include inflation, unemployment, and industrial production, often with the focus the effect of government policy on these factors.

Macroeconomics analyzes the overall economy and the issues affecting it such a growth, inflation and unemployment, where microeconomics only studies how those issues affect individual markets and how they make decisions about allocating scarce resources.

Macroeconomics is the branch of economics that examines the economic behavior of aggregates – income, employment, output, and so on – on a national scale.

macroeconomic employ, makes up to $300+ an hour and also gets very important to the country.

John Maynard Keynes was the most influential economist of the 1900’s and many of his ideas were adopted by Franklin D. Roosevelt to combat the Great Depression of the 1930’s. With the passing of the economic crisis in 2008, countless articles have been published supporting Keynes and his economic thought. He originally investigated the origins of the Great Depression and remodeled the field of economics with a basic conclusion: economies recover from downturns by spending money. Keynes theorized that during financial downfalls, the public becomes frightened and decreases spending, this leads to more layoffs, which in turn leads to an even greater decline in consumption, creating a vicious cycle. Many of Keynes’ theories in The General Theory of Employment, Interest, and Money (1936) are accurate, but are often overlooked in the legislative sector, due to political agendas triumphing over logic. “When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill-done. The measure of success attained by Wall Street . . . cannot be claimed as one of the outstanding triumphs of laissez-faire capitalism.” I will be addressing Keynes’ concept of business cycles in The General Theory of Employment, Interest, and Money—mainly focusing on the 2008 financial crisis—and analyze whether or not these arguments are more or less accurate than his other conclusions. I strongly believe that many of his ideas are true as he

From the sources of income, it can be seen that expenses eat up 70% of total earning with savings trailing at 30%. Since expenses are tracked by budget, mechanical and unplanned purchases are eliminated. This means other than on the predetermined expenditure; no money is left for unplanned events.

These major flaws in the past economic theories lead to the new ideas. Economist John Keynes explained that classical economics stated that wages and prices are very flexible; when in actuality they weren’t as flexible as previously assumed. Keynes argued that the market is self-adjusting, however it has a long time before it actually made its way back on the rise. “In the long run we are all dead” was quoted from Keynes. Keynes believed that it was the aggregate demand for goods in the economy that determined the level of employment and the level of output.

One of the hardest and most difficult economic recessions in history was accomplished using Keynesian economics by John Fredrick Kennedy. “Keynesian economics is a theory of total spending in the economy (called aggregate demand) and its effects on output and inflation. Although the term has been used (and abused) to describe many things over the years” there is six principal systems or beliefs that are what a Keynesian believes. (20) A Keynesian believes that total demand is inclined by a swarm of financial decisions public and private. The public decisions include, financial and economic policies. Nearly all Keynesians and monetarists believe that both financial and economic policies affect total demand. Secondly changes in total demand have their affect on output and on employment not on prices. Keynesians believe that it must get worse for it to get better. Also they believe that we live in the short run of things not in the long run. Keynes’s famous statement, “In the long run, we are all dead.” Thirdly Keynesians believe that prices, and more

Microeconomics is economics in a company that focus mainly on market, consumption, and supply and demand. Macroeconomics on the other hand focus on nation's economics as a whole, thus it is harder to come up with a solution. An example would be an economist in the Department of The Treasury. This job concentrates on macroeconomic aspects such as tax policies, problem analysis, assumes technical responsibility for various phases, research and evaluates different data, and produce recommendations associate with different problems. As this job seen to have little impact on the environment, it would be very wrong. Macroeconomics is made out many microeconomics decisions and many companies including energy companies, and other harmful one. The solution is harder than jobs in microeconomics and there might not be

Two economic models of thought are classical and Keynesian models. Each model takes a diverse approach to the economic education of financial policy, buyer behavior, and government spending. The classical model, which traces its origins to the 1770s, was the first systematic attempt to explain the determinants of the price level and the national levels of real GDP, employment, consumption, savings, and investments. Classical economist Adam Smith and others assumed that all wages and prices were flexible and that competitive markets existed throughout the economy. Classical economic theory is fixed in the theory of an (no government) unrestrictive economic market. This model especially its focus toward macroeconomics relies on four major assumptions: pure competition exists, wages and prices are flexible, people are motivated by self-interest, and people cannot be fooled by money illusion.

Macroeconomics is the study of economics as a whole and it affects everyone. It affects us all in the way it helps us make decisions. Issues like inflation, which can reduce the value of our savings or unemployment affect us everyday. As consumer we want to know the cost of good or how much borrowing money might cost. Businesses want to know if it's the right environment to introduce a product at a certain price. Even the government turns to macroeconomics to figure out such things as creating

3. Macroeconomics – the branch of economics that studies the relationship among broad economic aggregates like national income, national output, money supply, bank deposits, total volumes of savings, investment, consumption expenditure, general price level of commodities, government spending, inflation, recession, employment, and money supply.

In the past, I engaged in a very specific economic principle. The economic principle that once applied states that, everyone is better off with trade. I still remember when I was younger, studying at Jerome Middle School in Jerome, ID, where I conducted trades. My parents were proud owners of a Hispanic store. When I was younger I would take candy that was on sale at my parents store, bring it to school, and sell it. By doing this, I was conducting a trade with my consumers. I now notice that the principle stated above, everyone is better off with trade, is true. At the end of the day, I would leave with my earnings of the day, and my consumers would leave with their candy, well that’s if they haven’t ate it yet. Now that I’ve continued my studies at Northwest Nazarene University in pursue of a Financial Economics degree, I’ve studies economic issues that many economics have studied around the world. One in which I relate my story of when I was a child. The issue of poor countries is a popular one. Many like to question, “Will poor countries stay poor, if not, how can they become rich?” I look at this question, and think of when I was a child. Referring to my past story, I noticed that I was a child with no capital. I soon found capital finding a supply, candy, finding demand, my fellow classmates, and sell the product with a marked up value, and finally creating revenue. This is what poor countries need to do in order to improve their countries economic situation. After