MACROECONOMICS Page 1We read in the newss and hear in the picture system many macro stintingal outlets being tackled day-after-day . Some of which ar : stinting growth , inflation , changes in employment andunemployment and address relations with other countries . Wikipedia states that Macroeconomics isa sub-field of economics that examines the port of the parsimoniousness as a whole , once tout ensemble of theindividual economic decisions of companies and industries acquit been summed . Thus , we arelooking at the performance of the economy as a whole and overall view at the different factorsaffecting the market of champion nation . Understanding the theories of macroeconomics is a requirementfor any one to make an economic decision intelligently , most oddly by business possessorsemployees and consumers . Each of these players is a decision-maker and moldinessiness strive the studyof macroeconomics in to understand better the economic environment in which he operatesThe importance of macroeconomics to everyone can be used during the use of economicdepth psychology to the problems he faces and makes decisions from the plectrons he formulates crinkle people /Business ownersBusiness people or business owners are also called entrepreneurs . Byrns and precious stone (1992 pointed out that , entrepreneurs pull up stake a picky type of human imagerys , they combine labornatural imagerys , and smashing to produce goods and go while incurring risks in their require forprofits (7 ) The entrepreneur must make intelligent decisions within a given economic situationThe different macroeconomic writes can help oneself him in do a pick based on current evaluation ofthe Gross National Product or Gross domesticated Product , the price stability and model interest ratesVillegas (1987 ) st ates that The gross national product is a ! rough measure of the economic performance of acountry . It is suppositious to measure the monetary value of all the goods and operate produced in theeconomy during a given period (p . 203 ) If economists pull up stakes forecast an increase in GNP , thenbusiness people could bird-scarer good sale and profit from their business If GNP is judge todecline , they must brace themselves for interdict effects like down in the mouth sales and profit . Knowledge onthis issue can configuration the owners in their future decisions . pomposity also is an importantMACROECONOMICS Page 2macroeconomic issue which directly effects the economic system Decisions on the renewal oflocal raw materials may be one of their best pickax for expensive and imported raw materialsEmployeesThe employees are the human resource of the economic society . They are used to producethe outputs called goods and services that the consumers exigency . The man effect (either mental orphysical ) provided all ow be compensated by nets or salaries given by the business owners . Thereare collateral and negative effects in increasing the minimum wage of employees and we mustconsider the power of the employeeswill increase but to the business owners , this will regard as an increase in cost for the same number ofgoods and services produced .
By reducing the cost of production , labor king may be decreasedThe least-skilled jobs , those with the lowest marginal contribution to a firm s earnings , must be thefirst eliminated as the sequel of raising the minimum wage floor (Carson , 1983 , 76Consumers or saversThe consumer s or savers are individuals who rich person the mone! y or reckon to spoil the goodsand services that are offered in the market to suffer their human regards . When the price of acommodity increases , it may not be inflationary . Inflation occurs when the average level of pricesincreases . It can affect a consumer in his buying decision to either stock up the goods or buy at alater date . The consumer s savings will have less purchasing power but to a borrower , the producthe bought on installment is now worth more and he is pay on installment at a lesser sum total Economics is a matter of choice . There are always alternative uses of resources . Whetheryou are a business owner , an employee or a consumer , one must be apprised of the different factorsthat will affect his decision for making a choice . Understanding macroeconomics is an effectivetool in the economic analysis in to derive an intelligent economic decisionReference ListByrns , R .T . and jewel , G .W (1992 . Macroeconomics . New York HarperCollins Publisher , Inc Carson , R (1983 . Macroeconomic Issues like a shot : alternate approaches New York : StMartin s PressVillegas , B .M (987 . Managerial Economics . manilla paper : Sinagtala Publishers , IncWikipedia (2006 . HYPERLINK hypertext transfer protocol /en .wikipedia .org /wiki /Macroeconomics . November 7 http /en .wikipedia .org /wiki /Macroeconomics . November 7 , 2006 ...If you want to get a full essay, order it on our website: OrderCustomPaper.com
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