Macroeconomics is the core of our everyday lives, it is the macro economy and if doing well will increase the peoples income and the business profits will continue to rise. During the Great Depression of the 1930’s was when macroeconomics was born and has continued to develop. There are three major concerns when looking at the macroeconomic economy and they are price increases, output growth, and job loss. The economy performance in the long run and short run trends are extremely important to the macro economy. The U.S. has seen so far three recessions and a major increase in inflation. During this class and in recent news there has been much discussion about the Gross Domestic Product which is a crucial factor in recognizing the national income and manufactured goods accounts. It is the complete market assessment of a countries productivity of all closing imports and amenities within a specified period of time. (Concepts and problems in Macroeconomics)
Macroeconomics studies the total or combined products of all reserve provisions results the economy including the possessions of the governmental economic and financial policies. The scope of Macroeconomics includes financial progress business cycles, joblessness, inflation, financial and economic policy, and the global policy.
Supply is the measure of a good that companies can and want to sell for all possible expenses offered and over an era of time while maintaining a continual all other aspects that could affect that amount. Demand is the quantity of a good that consumers can pay for and secure at each potential price and over a period of time while holding persistent all other aspects that could affect this amount.
Opportunity cost is the expenses of the choice not selected or the omitted value of that choice. Opportunity cost emerges every time people are provoked with an economic predicament. A tradeoff is the need to choose between two things.
Business cycles refer to the fluctuations of the economic activities along the gross domestic product. The multiplier effect assumes that when the government implements expansionary fiscal policy output changes. The tax multiplier is the ratio of the change in cumulative output (GDP) to a self-sufficient variation in taxes. The tax multiplier can be used to specify the adjustment in fiscal policy induced taxes is needed to accomplish a given level of cumulative output (full time employment). Tax rebate is currency that is submitted by the Federal government to a tax payer who has overpaid the IRS. The Federal Reserve System for about 100 years has directed the U.S. economy. The Central Bank is the chief monetary authority for the government that is highly knowledgeable in the financial arena to guide the country toward stability and growth. The Central Bank performs monetary policy. Monetary policies are avenues for managing the amount of money in the country. Monetary and fiscal policies are used by the government to influence how to motivate people spend money. Monetary policy can be put more money in the system or reduce the amount of money in the system. (Reserve, 2011) The Central bank is a major factor on the countries interest rates, the amount of money that is available to spend, the amount of people that are out of work, and how much items cost. The mission of the Feds is to make sure that banks are in stable condition to operate and the financial system is stable. The Fed also operates by itself, which means that permission is not needed from the President or Congress to do its job or exercise its power. The Fed functions to maintain a stable economy, these functions include open market operations, discount window lending and reserve requirements. The Feds can determine what amount to charge banks on short term loans to cover the amount needed to stay in the banks. The Feds work with the U.S. Department of Treasury, to carry out the government’s interchange rate procedures. In order
