Macroeconomics and Its Impact

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Macroeconomics and its Impact on Entering the Business World Macroeconomics is "the field of economics that studies the behavior of the aggregate economy. Macroeconomics examines economy-wide phenomena such as changes in unemployment, national income, rate of growth, gross domestic product, inflation and price levels" (Investopedia, 2011). In other words, macroeconomics examines economic trends in the economy as a whole, in contrast to microeconomics, which looks at the decisions made by firms and individuals (Investopedia, 2011). Most business majors have a good understanding of microeconomics because supply and demand help explain the individual supply chains that professionals will confront in the workplace. However, one simply cannot understand microeconomics without understanding macroeconomics because larger economic forces help impact part and supply pricing that lead to fluctuations in costs, which may lead to supply issues on the micro level. In fact, "the factors that are studied by macro and micro will often influence each other, such as the current level of unemployment in the economy as a whole will affect the supply of workers which an oil company can hire from, for example" (Investopedia, 2011). One of the key concepts of the class that I believe will be helpful in the business world is having an understanding of the Index of Leading Economic Indicators (LEI). "The index is based on ten key variables, including the number of manufacturers' new orders
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