Macroeconomics and Its Impact

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

6. Why do economists use real GDP rather than nominal GDP to gauge economic well-being?

Macroeconomic analysis helps firms to explore the interrelationships among a whole host of markets, while microeconomics focuses on variables like price and quantity, & cost

Microeconomics involves supply and demand in an individual market, individual consumer behavior, and externalities arising from production and consumption; while, macroeconomics involves monetary/fiscal policy, reason for inflation and unemployment, and international trade/ globalization.

1. GDP is the market value of all goods and services produced within a country over a given period of time; it is primarily used to gauge a country's economy and is also viewed as the size of the economy at a particular period of time. Moreover, GDP is a comparison made between the previous year and the current year to check the country's economic growth over time. However, measuring GDP is complicated but at its most basic, its calculation is done by either adding up everyone's yearly earnings or adding up what everyone spent; logically both measures lead to the same total (United States Bureau of Economic Analysis, 2009).

Macroeconomics plays an important role in business activities of every organizations. Most of business entities were affected by Reserve Bank of Australia’s decision on the cash rate and other macroeconomic policies of the government. Hence it is crucial for every organizations to learn about the current macroeconomic situation and other macroeconomics factors that happening and changing every day. This report then will address and advise the latest current economic situation in Australia. There are many factors that we can discuss and mention in macroeconomics activities, however this report focus on more details about the recent movement GDP growth rate, unemployment rate, and commodity price. Importantly, the forecast about

After nearly two years of sluggish economic growth, the pace of economic expansion has finally began to accelerate. Today the U.S. economy is strong and getting stronger. After experiencing a series of significant shocks during the previous years - recession, dot-com collapse and stock market meltdown, terrorist attacks, and corporate wrongdoing, the American economy has managed to remain optimistic. Over the past three quarters, real GDP has grown at the fastest pace in nearly twenty years. Job creation is moving into full gear. The economy has posted steady job gains for each of the last ten months - creating more than 1.5 million new jobs since August. Inflation remains low by historical standards, with the CPI (Consumer Price

In reviewing the textbook, Macroeconomics: Principles for a Changing World, one topic of interest was Chapter 2, "Production, Economic Growth, and Trade". There were numerous articles relating to the assigned reading and class instructions. Three of these articles are summarized below, then linked to the class material. The chosen articles are "UK economy suffers slashed growth outlooks and lacklustre trade data" by Josie Cox and Ben Chu, "For Dignity and Development, East Africa Curbs Used Clothes Imports" by Kimiko de Freytas-Tamura, and "Thai growth revised upwards to 3.9 per cent". All of these sources focus on the aspects of economic growth and trade.

Microeconomics (from Greek prefix micro- meaning "small" and "economics") is a branch of economics in which you study the behaviour of how the individual firms make decisions to allocate limited resources. Normally, it applies to markets where goods or services are being bought and sold. Microeconomics examines looks at how these decisions affect the supply and demand for goods and services, which determines prices, and how prices, in turn, determine the amount supplied

One of the outstanding elements of macroeconomics is Gross Domestic Product (GDP). In the last five decades, this element has been embraced as an acceptable meter for economic growth (Constanza et al., 2009) and remains the best indicator of standard of living of a country. Ghana, a developing country west of sub-Saharan Africa is not in isolation and different from others. It is an undeniable truth that Ghana?s economy has not grown much since the early 1960s after her independence (Aryeetey et al., 2000). Over the years, Ghana 's economic growth has been pegged at 3% to 4% (Institute of Economic Affairs , 2006). However, in 2011, Ghana recorded a higher Gross Domestic Product growth of about 14.5.0% (Data.worldbank.org, 2016). Nevertheless, this growth has not been sustained over the subsequent years. Gross Domestic Product growth has been 4%, 8%, 15%, 7.9%, 5.4% and 4.2% for consecutive years from 2009 to 2014 respectively (IMF, 2015).. From the statistics, it is very evident that GDP growth in Ghana has been undulating. The statistics can be ascribed to the financial contributions that various sectors such as the real sector including the services sector, the external sector and the monetary sector make to the economy. Notwithstanding this, over the years, the major contributor to Ghana?s economy has been the service sector (Ghana Statistical Service, 2013; Ghana Statistical Service, 2012) about 50.2% of the total real sector contribution to the GDP

One puzzle that has long plagued business cycle analysis is the existence of large fluctuations in aggregate economic activity that arise from what seem to be small shocks. This anomaly is what motivated the research into the financial accelerator. The financial accelerator is a possible explanation for these disproportional fluctuations. Changes in the credit market amplify and spread the initial shocks. This is explanation fits particularly well when firms and households are overextended or highly leveraged. This credit-market amplification of economic shocks is the result of reduced access to borrowed funds.

In economics, the scope is very wide. Hence, the study of economics is organized under two major vantage points from which the economy is observed: macroeconomics and microeconomics. Macroeconomics concerns the operation of the economy as a whole and the interactions of the major groups like the household, business, government, and foreign sectors in the economy. After observing society as a whole, Adam Smith noted that there was an “invisible hand” that turning the wheels of the economy: a market force that keeps the economy functioning.

The article highlights macroeconomic factors that affect an economy. Microeconomic factors like Gross Domestic Product(GDP), Monetary policy, Fiscal Policy, Interest rate, Inflation, Deflation, Unemployment, economic growth etc. Many people accept inflation as a fact of life but sometimes under some economic circumstances opposite situation take place, which we call” Deflation”. It is also known as Negative Inflation Rate (when inflation rate decreased below 0%). Moreover, deflation is an indication of declining economic condition.

•     Full Employment- Used to be a job for all, now a job for all those who want one. Affected by economy-if economy is good, more jobs, if you are going through a recession then that is not the case. If you are over 21 the minimum wage is £4.85 for over 21’s, for under 18’s just £3.

Macroeconomics provides us with a bird 's-eye view of a country 's economic landscape. Instead of looking at the behavior of individual businesses and consumers—called microeconomics—the goal of macroeconomics is to look at overall economic trends such as employment levels, economic growth, balance of payments, and inflation. The study of the world economy, for example, is essentially a macroeconomic survey.