In this essay we will discuss about Microeconomics and Macroeconomics. After reading this essay you will learn about:
Posted in Essay examples Macroeconomics came to exist when modern governments collected and disseminated economic statistics. With knowledge about the economy as a whole, macroeconomic forecasts can help individual firms make microeconomic decisions. The following paragraphs will discuss several macroeconomic forecasts created by different institutions discuss terminology of economic data and its implications to N.
Significant data contained in the text included GDP, growth rate, employment and unemployment, inflation and economic growth. Some of the differences among these forecasts included the differences in data analysis that individual agencies choose to evaluate.
For instance, the San Diego Regional Economic Corporation stressed population growth and divided its categories in terms of gender, age, jurisdiction and ethnic composition. S Retail market conditions and projected economic trends occurring in major U.
The most similar information came from Carmetrics, and the Ministry of the economy which both focused on the same categories such as GDP and the labor market which forecasts employment and unemployment.
Although many of actual numerical values were different from each other, the figures appeared to be in agreement with regards to the direction the economy was headed towards.
A specific example was the increase of GDP from to It is a reflection of consumption of goods and services purchased by households and government agencies. Since one of the operational goals of HOPE ADHC is to expand its healthcare service to more patients, assessing a positive direction of GDP will provide clues that the center is also heading in the right direction.
A second economic indicator of the economy that was used in forecast analysis was unemployment. The forecasts showed a decline in unemployment rates. Lieberman explained that the opportunity cost of unemployment is lost output of the nation as a whole. Due to lowered employment rates and fewer people available that are actively seeking work, the health care center may be forced to pay higher salaries to entice employees to switch from other companies to its own.
In addition, these annual economic forecasts included a projected increase in employment or civilian workforce. Lieberman also explains that an increase in employment can cause and increase in potential output due to and increase in labor supply.
By having more people that want to work, economic growth will be stimulated and the average standard of living will rise when more output is generated and grows at a faster rate that population. The forecast provided useful information such as population segmentation by age and disposable income.
Data reflects a rise in percentage population over the age of 50 and included income segmentation. This can also help HOPE ADHC to project estimates of its own costs of inputs and better estimate the costs of healthcare services in when it is available to service the market.
In conclusion, macroeconomic forecasts are useful tools that provide individual corporations with necessary data that can clue them in making important decisions. HOPE is an example of a company who uses macroeconomic concepts and activity to base many of its microeconomic decisions on.
With the better understanding of the economy as a whole, businesses can project their own forecasts to fit their operational needs and goals.Database of FREE Economics essays - We have thousands of free essays across a wide range of subject areas.
Sample Economics essays! Essays and revision note on all aspects of inflation. Definition, causes of inflation, costs of inflation. Trade-offs with other macroeconomic objectives and how to reduce inflation.
Different views Keynesian/monetarist. May 12, · Macroeconomics and the Housing Industry Macroeconomics is an excellent tool for the analysis of the housing industry as something like a capital good, as a home is considered to be, cannot easily be studied in a short-term platform.
Macroeconomics came to exist when modern governments collected and disseminated economic statistics.
In order to explain fluctuations in output and production, it is useful for corporations to know what the economy’s overall level of output and production is (Lieberman, ). Macroeconomics is a branch of economics that explores trends in the national economy as a whole considering the study of the sum of individual economic factors.
Macroeconomics considers the larger picture, and an understanding of how do business operates is crucial to understand macroeconomics. Unit 2 Individual Project 2 ECONA Macroeconomics Dr. Leo Lina Casper Aug.
31, This paper is about the open and closed systems of economics.