Macroeconomics

Macroeconomics addresses the economy as a whole, instead of individual markets.

Asked in Macroeconomics

What are two microeconomic and two macroeconomic problems?

User Avatar
Macroeconomic problems are problems that have a broad effect on the economy and appear in aggregate measures such as national income, the balances of trade and payments, the exchange rate, the price level, and the employment level. Examples include inflation, deflation, recession, speculative booms, unemployment, and national debt. Microeconomic problems are problems affecting the allocation of factors of production between different uses, and appear in the prices and levels of production and consumption of particular goods and services. Examples include monopoly, monopsony, external costs and benefits, non-price-excludibility, non-rivalry, information assymetries such as agent-and-principal problems, moral hazard, distorting taxes and subsidies, declining industries, and speculative bubbles (in particular markets as distinguished from general booms).
Asked in Macroeconomics

What is meaning capital goods of macroeconomics?

User Avatar
Capital goods are the produce that are in process of being manufactured, but are not yet completed for sale. Capital goods also means the buildings, installations, equipment, tools, transport vehicles etc that are used in the production process and which are only slightly affected by it in terms of depreciation without the transformation as suggested by the former category of these kind of goods.
Asked in Macroeconomics

What is macroeconomics?

User Avatar
Macroeconomic deals with the functioning of the economy as the whole. It is concerned with economy wide issues such as unemployment, inflation, and economics growth/development; it is the study of economics from a broad perspective of the resources and factors of production in an economy.
Asked in Macroeconomics

Do Individual economic decisions have Macroeconomic implications?

User Avatar
The economic study of individual actions (and individual organizations actions) is Microeconomics. Macroeconomics is the branch of economics that studies the overall working of a national economy. While individual actions do affect the national economy, in general only large groups of individuals cn affect a national economy.
Asked in Macroeconomics

What is the macroeconomic stabilization function of government?

User Avatar
Obtain high employment and price stability
Asked in Macroeconomics

Objectives of macroeconomics from Islamic perspective?

User Avatar
1. social justice - based on the principle that all the exists in the Universe belongs to Allah. Man, being God's vicegerent on earth have been granted the ownership of this bounties. He must therefore use whatever is given to him as a trustee and not as an absolute owner. - Islam insist on a powerful built-in income-redistribution mechanism; nevertheless some income inequality is allowed since it promotes individual initiative. - social justice in Islam is rooted in Man's faith. A man of faith automatically has a duty to do justice. Income redistribution, voluntary or compulsory, is not only an economic necessity,but also a means to spiritual salvation. - the concepts rests on its value of maximizing human happiness. In Islam, happiness not come so much from the possession of material goods but from contentment and gratitude. 2. Universal Education - acquisition o knowledge is compulsory. Man's claim to superiority over all creations is based on this superior knowledge. - every child, irrespective of his birth, must receive an equal opportunity to education. - universal education must be subsidized (or free of charge) so that education is available to equalize man who are endowed differently in terms of wealth and property. 3. Optimal Rate of Economic Growth - growth in an Islamic economy is comprehensive and include moral, spiritual and material aspects of man's life. In terms of capital formation, it include human capital and material capital. - man is the centre of all economic activity. This consideration should influence the composition of investment because the expenditure on education is considered an investment. 4. Maximizing Employment - economic growth make 'maximum' contribution to the creation of new employment opportunities. The objective is however not to attain full-employment at the cost of economic efficiency. Additional employment in the long run must be generated in a technically efficient fashion.
Asked in Macroeconomics

What is Definition and scope of macroeconomics?

User Avatar
macro economics is a economics related with whole universe . its contain all the dimension of a country and its surrounding economy .
Asked in Macroeconomics

Is welfare a macroeconomics issue or a microeconomics issue?

User Avatar
Both. In the macro sense it requires government participation to supply the funding. In the micro sense, it requires social-workers to apply these funds for subsidies to the "deserving poor".
Asked in Macroeconomics

What is the difference between macroeconomics and microeconomics?

User Avatar
Macroeconomics is the branch of economics that deals with aggregate economic decision or behavior of an economy as a whole; for example, the problem of inflation, level of unemployment, and payment of a deficit. To put it simply, it studies the economy as a whole. In contrast, Microeconomics is the branch of economics that studies the behavior of an individual decision-making unit such as an individual firm, their relationship with the market, at what price to set a commodity, how much of a commodity should be produced, how an individual uses their income to maximize satisfaction, and how the price of each commodity in the market is affected by the forces of supply and demand. For example, macroeconomics deals with GDP, inflation, interest rates, and unemployment. Microeconomics deals with the economics of health care or agriculture or labor. For instance, a macroeconomist would study GDP numbers, Fed moves, the Dow Jones Industrial Average, or the Producer Price Index. A microeconomist, on the other hand, might attempt to study the economics of labor (ie: unions, labor shifts, etc). Although "micro" means small and "macro" means large, the two shouldn't be separated by the size of an economy or firm. For example, Wal-Mart may be many times the size of the economy of a small nation; however, Wal-Mart's costs and supply/demand curves will be governed by microeconomic decisions while the GDP of the small economy is an aspect of macroeconomics. More Information:Microeconomics is generally the study of individuals and business decisions; macroeconomics looks at higher up country and government decisions. Macroeconomics and microeconomics, and their wide array of underlying concepts, have been the subject of a great deal of writings. The field of study is vast; here is a brief summary of what each covers: Microeconomics is the study of decisions that people and businesses make regarding the allocation of resources and prices of goods and services. This means also taking into account taxes and regulations created by governments. Microeconomics focuses on supply and demand and other forces that determine the price levels seen in the economy. For example, microeconomics would look at how a specific company could maximize it's production and capacity so it could lower prices and better compete in its industry. Macroeconomics, on the other hand, is the field of economics that studies the behavior of the economy as a whole and not just on specific companies, but entire industries and economies. This looks at economy-wide phenomena, such as Gross National Product (GDP) and how it is affected by changes in unemployment, national income, rate of growth, and price levels. For example, macroeconomics would look at how an increase/decrease in net exports would affect a nation's capital account or how GDP would be affected by unemployment rate. While these two studies of economics appear to be different, they are actually interdependent and complement one another since there are many overlapping issues between the two fields. For example, increased inflation (macro effect) would cause the price of raw materials to increase for companies and in turn affect the end product's price charged to the public. The bottom line is that microeconomics takes a bottoms-up approach to analyzing the economy while macroeconomics takes a top-down approach. Regardless, both micro- and macroeconomics provide fundamental tools for any finance professional and should be studied together in order to fully understand how companies operate and earn revenues and thus, how an entire economy is managed and sustained.
Asked in Macroeconomics

What are the importance of macroeconomics?

User Avatar
The theoretical and practical importance of macro economics is briefly discussed as: 1. It is helpful in understanding the functioning of macro economics system. 2. It explains the factors which determine the level of national income and employment in an economy. 3. It explains the circular flow of national income in an economy. 4. It explains the problem of unemployment which is a main problem of developing countries. 5. It explains the various aspects of international trade such as terms of trade balance of payments, foreign exchange etc. 6. It studies the causes of fluctuations in the business cycle and to formulate the policies to control inflation and deflation.
Asked in Macroeconomics

How does microeconomics relate to macroeconomics?

User Avatar
Microecnomics is the study of economics on a small scale and macroeconomics is on a large scale. They are related in that general trends in either macro or micro will sometimes affect the other, but other times they can have completely opposite trends. In the general view of the two, a trend in one will be reflected in another, although sometimes on different scales. Microeconomics is the foundation of macroeconomics analysis
Asked in Macroeconomics

What economic choices must every firm face Macroeconomics?

User Avatar
Compensation and Benefits, Employee Development & Training, Hiring & Retention, Labor & Employment Law, Workers Compensation,Management & Strategy, Economic Crisis,Insurance,Public Health & Safety, politics & Society,Jobs & Education, Psychology.
Asked in Macroeconomics

What is the similarities of macroeconomics and microeconomics?

User Avatar
Microeconomics and macroeconomics are related because changes in the overall economy arise from the decisions of millions of individuals. Although they are related, the methods employed in each area differ to the extent they be studied in separate courses or discussions.
Asked in Macroeconomics

What are 2 examples of macroeconomics?

User Avatar
- Country's Gross Domestic Product - Technology
Asked in Macroeconomics

Four objective of macroeconomics?

User Avatar
Low unemployment Low Inflation High and stable economic growth The avoidance of balance of payments deficits and excessive exchange rate fluctuations (this one is concerned with international trade) They are actually Full Employment - lowest rate of unemployment attainable without accelerating inflation Price Stability - keeping inflation down (monetary policy, fiscal policy) Economic Growth - self explanatory External policy - Current account, exchange rate etc
Asked in Macroeconomics

What are importance's of macroeconomics in a country?

User Avatar
Macroeconomics is the study of broad functions of an economy. It has importance in Government, Politics, Trade, Industry, and every other feild that deals with monetary regulations.
Asked in Macroeconomics

What level does macroeconomics focus on?

User Avatar
Which level does macroeconomics focus on?
Asked in Macroeconomics

What is macroeconomic environment?

User Avatar
While microeconomics deal with the operations of individual firms and markets, macroeconomics examines how numerous markets interact with the government and each other in the regional, national, and sometimes international realms