Microeconomic issues in the simplest and most basic sense refers to the study and observation of the single or individual business decisions and practices. It could also refer to the aspect and circumstance where the forces of the market such as supply and demand meet and…
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Microeconomics on the other hand would focus mostly on how for instance a company would boost and reorganize its production capacity so as to reduce output and at the same time maximize output. As a matter of fact and retrospect, this paper will focus in details in relative terms the Microeconomics and Macroeconomic issues relating to the United States of America and China.
To begin with the United States of America by fact and reason happens to be one of the richest countries in the world today if the number of industries and billionaires is anything to go by. This is the reason as to why the current Gross Domestic Product which is informed by per capita income stands at the $16.8 trillion. China on the hand has a Gross Domestic product of $9.24 trillion, which is relatively lower than that of the United States of America (White, Jude and Xiaoyuan, 12). One of the reasons that has been given as the possible justification and reasons for the growth of the US economy comparative to the Chinese includes the economic policies. From the outright and face value, the United States of America happens to be a free society and thus a free economy by extension. This is to say that the amount of fiscal and monetary interventions that the United States government invokes are on the minimum. Thus, the free markets forces would interact and meet at their optimum or equilibrium.
China on the hand, employs a stringent mode of rules and policies which includes the inclusion of monetary and fiscal policies in any event that they are needed or necessary. It goes without mentioning that once the interventional rules and policies are involved then some side effects would be incurred. For instance, if the policies are enforced by a government, then the tax rate would increase which implies that the level of investment would reduce. This stems
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