Macro 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

Macroeconomics seeks to obtain an overview or outline of the economy, i.e. examines the beach, not the

6. Which of the following is not included in GDP? interest payments on the national debt

Macroeconomic principles come into play when the whole market or more outside factors are involved. Examples of this in the video game industry, which I work in, would be when the rating system for games are under scrutiny, or when a new console is put on the market as competition. These outside factors affect not only the company I work for, but every other company in the industry, from the hardware manufacturers such as Microsoft and Sony, but also the game studios such as Activision, EA and Rockstar Games. Microeconomic principles are caused by and effect only my company in particular, such

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

The simulator taught lesions on each principle in regards to supply and demand which helps when making the proper decisions on market shifts either negative or positive. Microeconomics principles help to make the decisions that directly affect your supply and demand goal for the company. Macroeconomics decisions can be forced upon a company because an outside factor such as the government or put a price ceiling on a product or renters payments. This affects the company’s goals while also trying to still maintain your own supply and demand

Microeconomics focuses on supply and demand. A company would look at ways to increase production so that the company could decrease their prices compared to competitors. This would adjust the equilibrium price of products by increasing the quantity that is available. This allows the company the capability of passing price savings to consumers. Macroeconomics is used as the economy changes such as with inflation. Inflation would cause a company to have a boost of cost in materials from producing their product. This creates a change in quantity to be provided as supply has to be adjusted to meet the decrease of demand from the effects on equilibrium price.

2. The key economic concept that serves as the basis for the study of economics is:

11.Macroeconomics is best described as the study of A) very large issues.B) the choices made by individual households, firms, and governments.C) the nation's economy as a whole.D) the relationship between inflation and wage inequality.Points Earned: 0.4/0.4Correct Answer(s): C

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.

2. Microeconomics – the branch of economics, which deals with the individual decisions of units of the economy – firms and households, and how their choice determine relative prices of goods and factors or production.

Macroeconomics deals with large scale phenomena. Microeconomics deals with the options of small economic unit.

The Economy is the backbone to society. There are many factors that operate in, and govern our society’s economical structure. Factors such as scarcity and choice, opportunity cost, marginal analysis, microeconomics, macroeconomics, factors of production, production possibilities, law of increasing opportunity cost, economic systems, circular flow model, money, and economic costs and profits all contribute to what is known as the economy. These properties as well as a few others, work together to influence the economy. Microeconomics and Macroeconomics are two major components. Both of these are broken down into several different components that dictate societal norms and views.

New Classical Macroeconomics arose from the Monetarism and Rational Expectation School in the 1970s and follows the tradition of classical economics. If the market mechanism is allowed to play its role spontaneously, which could solve the unemployment, recession and a series of macroeconomic issues. Keynesian economists believe that changes in the money supply will lead to changes in effective demand that will changes in the total economy. For economic cycle fluctuation, Keynesian economists believe that is a disequilibrium phenomenon. In 1960s, Keynesian economists appealed to the Phillips curve, which means monetary or fiscal policy will lead to lower unemployment rate and cause higher inflation rate as well. However, the new classical rejected the idea, which argued that an expansion of aggregate demand will cause lowered unemployment and economics fluctuation are economics balance under the incomplete information. Unexpected the monetary shock is significant reason for equilibrium change. Luca’s critique take into account the Philips curve should used for evaluate the economics policy. Luca’s critique take for the parameters of measurement model is functions of policy variables, which will follow the policy change to alter.

Economics is the social science that studies the production, distribution and consumption of goods and services and in general the economy includes all of the country's economic system, or any other area, employment, capital, natural resources, industry, trade, distribution, and consumption of goods and services in that region. The economy could also be described as a spatially limited social network where the exchange of goods and services in accordance with supply and demand among participants through barter or through the medium of Exchange using the acceptable values for debt and credit within that social network and a simplified economy shows how the community provides basic needs, there are different ways to measure the economic performance of the country, such as exchange rate and GDP GNP and the securities market and stock market and national debt, interest rates and inflation, unemployment and balance of trade.