Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

Macro Economis - - Essay Example

Comments (0) Cite this document
Macroeconomics Introduction This present paper is an essay that largely focuses on macroeconomics and it covers five critical areas pertaining to this subject. The areas covered by the essay include the definition of the term macroeconomics, secondly, the objectives of macroeconomics, and thirdly, the essay will explain why macroeconomic objectives are significant in the United Kingdom…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER96.1% of users find it useful
Macro Economis -
Read Text Preview

Extract of sample "Macro Economis -"

Download file to see previous pages Macroeconomics As noted above, this present paper is based on the concept of macroeconomics, which has been described by Bauman and Klein (2011) as the branch of economics that majorly deals with the wider perspective of the national economy rather than a single segment of the economy. With reference to the writings by Mankiw (2011, p23) macro-economic is stated as “a branch of economics that focus on the trends and movements in the entire economy,” and some of these movements and trends concern employment, inflation, price levels, rate of growth, national income, and gross domestic product of a particular country, or region/ economic block. In comparison to the other branch of economics, Chung et al. (2007) stated that microeconomics mainly focus on smaller aspects of the economy such as the behaviour of consumers and business organisations, and how this affects quantities and prices within a particular market. According to Buiter (2010), even thou the field of macroeconomics is broad, it largely focuses on two critical areas of studies, which include the study on the causes and repercussions of short-run business cycles on the national income and the study on determinants of long-run economic growth. Dale et al. (2010) stated that usually the central government as well as the large corporations, utilise macroeconomic forecasts and models primarily to develop and evaluate economic policies and business strategies. Macroeconomic objectives In the previous sub-section, it was stated that macroeconomics is simply a branch of economics that focuses on the wider aspect of the economy; however, Keynes (2011) further added that macroeconomics also concerns itself with the conscious and deliberate management of economic variables within an economy in order to attain certain objectives. It is of essence to note that macroeconomics relies on three critical policies to attain its objectives, and these policies include the monetary policies, fiscal policies and supply-side policies. Monetary policies are defined by Krugman and Wells (2009), as measures that are adopted by the central government through the central bank in order to increase or decrease the supply of money in circulation while fiscal policies are the policies of the central government, which focus on the country’s budget and especially issues pertaining to borrowing and taxation. As for supply-side policies, they are mainly devised to ensure that the market works efficiently. According to the writings by Bauman and Klein (2011), they wrote that the top objectives of macroeconomics include price stability, exchange stability, full employment, growth of the economy, and the balance of payment equilibrium. a) Price stability According to Buiter (2010), the maintenance of price stability is crucial to the national economy because higher price levels contribute to various problems pertaining to consumption, distribution, exchange, and production. For example, inflation distorts economic calculations as well as expectations and it generates varying problems in different sections of the economy. Moreover, Buiter (2010) stated that during inflation creditors lose while debtors gain. Furthermore, inflation strains the relationship between capital and labour, and the distribution of national income becomes ...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
(“Macro Economis - Essay Example | Topics and Well Written Essays - 2000 words”, n.d.)
Macro Economis - Essay Example | Topics and Well Written Essays - 2000 words. Retrieved from
(Macro Economis - Essay Example | Topics and Well Written Essays - 2000 Words)
Macro Economis - Essay Example | Topics and Well Written Essays - 2000 Words.
“Macro Economis - Essay Example | Topics and Well Written Essays - 2000 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document


Uncontrollable Factors in Macro and Micro Environment and their Impact On Shyamali Exporters Limited

... College Module Analysis of Uncontrollable Factors in Macro and Micro Environment and their Impact On Shyamali Exporters Limited. Organisations exist within a dynamic business environment, which continuously impacts upon the organisations operations. While organisations may attempt to control certain aspects of its environment, mainly within the microenvironment, the environment remains mostly uncontrollable. Companies operating within today’s globalised economy are affected by a wider and more turbulent globalised macro environment and therefore pose greater managerial challenges. Key micro environmental factors include company, competitors, suppliers, customers, marketing intermediaries and publics of the company. The macro...
9 Pages (2250 words) Case Study

Macro Economic Policies of the French and German Governments

In contrast, the Socialist Partys Ségolène Royal has made large spending promises which would cost, according to estimates by the Economist (2006), €49 billion per year by 2012. That is almost a third more than the expenditure planned by the current government, and there are questions as to whether the faltering French economy will be able to support such levels of expenditure.
In the three months to September 2006, the quarterly GDP growth rate was zero, when the Bank of France had forecast growth of half a percent. Many economists believe that the flat growth in the third quarter of the year was merely a correction from the 1.2% growth in the second quarter, a view that was born out by 0.7% growth in the...
11 Pages (2750 words) Assignment

Analysis of Macro Factors of the Business Processes of Electronic Firm Sonic Divine

Analysis of Macro factors that impact the market strategy
The fast-changing dynamics of the current business processes necessitate a corresponding change in strategy so as to take into consideration the emerging risks which may influence the overall development of the business enterprise. Nonmarket factors, in emerging markets, become all the more crucial because of the sensitive nature of the new market potential and the volatility of the market forces. The nonmarket factors or the new macro-environment factors have a significant impact on the market strategies of the products, thus making it essential for the organizations to incorporate the vagaries of those environment elements into its marketing strategy. There are six m...
8 Pages (2000 words) Case Study

Micro and Macro Carbon Audit

...Micro and Macro Carbon Audit 0 Introduction 1 Carbon Emissions Carbon dioxide (CO2) is released into the atmosphere by various human activities. Burning fossil fuels for the production of energy and transport are activities that are the primary source of CO2 in the atmosphere. USA, China, Indonesia, and Brazil are the highest contributors of CO2 in the atmosphere. Deforestation is another cause for more greenhouse gas emissions. Burning of tropical forests to make room for industrial agriculture such as cattle ranching and palm oil plantations emit massive amounts of CO2 into the atmosphere. Global warming has become a pressing issue of our time, and scientists have suggested that drastic cuts in CO2 emissions are required to stop global...
14 Pages (3500 words) Research Paper

Macro and Competitive Environment of the Non-Alcoholic Redbull Cola in the UK Market

...Consultancy Report Reference The report is prepared for the Chief Executive Officer of ‘non alcoholic Redbull Cola’ so as to study and evaluate the macro and competitive environment of the product in the UK market. Procedures In the fast changing environment of highly competitive global business, taking cognizance of fast changing preferences of people have become major imperatives of the market strategy along with emerging new paradigms of macro environment which significantly impact business performance. As a Marketing Consultant, the study of macro environment has become crucial to the success of Redbull Cola drink. The study was, therefore, primarily focused on the following factors: The benefits of using Redbull Cola drinks...
6 Pages (1500 words) Case Study

Macro and Micro Environmental Factors in the Organization of Tesco

...A critical analysis the impacts of macro and mirco environmental factors to the organization of Tesco and the marketing mix decisions. All organizations are open systems; they exist within a dynamic and complex environment having a variety of interchanges with it, both receiving inputs and outputs. Companies try to control the nature of their output but very few of them can control more than a few of the inputs they receive. Hence organizations try to predict, in future, the changing environment in which they are working and in result they make strategies to combat such changing environment. Successful organizations tend to such things and hence positive results follow. The organization that I have chosen is TESCO, which is a well...
10 Pages (2500 words) Case Study

The Key Macro Factors that Have Influenced the UK Grocery Retailing Industry since the Early 1960s

... corporate strategy management and exploitation of macro economic factors. This is further reiterated by Johnson et al, who opine that it is the environment which ultimately shapes organisational survival in the marketplace (Johnson et al, 2008, p.54). Indeed, the underlying basis of macroeconomic theory is the interrelationship between performance and behaviour in decision making regarding national economies along with a consideration of the various determinants of economic activity (Michl 2002, p.20). A principle macroeconomic model is the dynamic stochastic general equilibrium model, which explains economic growth, business cycles and monetary and fiscal policy, along with consideration of how the economy evolves over time accounting...
13 Pages (3250 words) Assignment

Macro Issues That Affect Airlines Industry

...1. Macro Issues That Affect Airlines Industry The airline industry is also affected by macro issues taking into account the following: The current world financial crisis negatively affects the demand of the airline industry and customers’ disposable income as they becoming more price conscious. Market deregulation and liberalization in the airline industry had increased competition. The emergence of low-cost carriers (LCC) has exceeded the high performance and profitability of legacy carriers. The impact of terrorism and contagious diseases had also decreased the demand for air travel, because customers are more conscious on their safeness (Beamish & Ashford, 2005, p. 352). The airline industry is gravely affected by the rising fuel...
10 Pages (2500 words) Case Study

Macro and Microeconomics Factors in the UK Housing Market

The housing industry is divided into residential, commercial and industrial segments. Economists define supply in terms of service units, that is, a physical unit can be deconstructed into the services that it helps provide. These housing unit services are considered as an unobservable theoretical construct. Housing stock depreciates making it qualitatively different from a brand new constructed building.
The owner, user/owner and renter comprise the demand side of the housing market while the renovators and developers comprise the supply side of the market. In order to implement the simple demand and supply analysis to the housing markets, several modifications have to be made to the standard microeconomic procedures and ass...
8 Pages (2000 words) Research Paper

(1) Select a specific firm in business markets you are familiar with and (2) analyse market segmentation strategy of the firm in business markets. (3) Some firms follow a single-stage segmentation approach using macro dimensions; others use both macro-dim

...Market Segmentation Strategy of Nokia Company Contents Executive Summary 2 Introduction 3 Central Concepts Defining Market Segmentation 4 Description of Nokia’s Market Segments Based on Psychographic 9 The Segmentation of Nokia Conducted on the Basis of Price 10 Conclusion and Recommendations 11 Bibliography 12 Executive Summary The Nokia Company is one of the leading entities in the mobile phone industry. The company has exhibited a proper understanding of the dimension used in market segmentation. This is evident in the company’s efforts to identify numerous market segments and design products that suit the needs of these customers. The first section of the paper presents the central aspects defining market segmentation... Segmentation...
10 Pages (2500 words) Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Macro Economis - for FREE!

Contact Us