Contact Us
Sign In / Sign Up for FREE
Go to advanced search...
Nobody downloaded yet

Macroeconomics - Demand and Supply - Coursework Example

Comments (0) Cite this document
This work called "Macroeconomics - Demand, and Supply" describes Macroeconomics and its two major functional areas that are Aggregate Demand and Aggregate Supply. The author takes into account some important factors regarding macroeconomics including unemployment, inflation, factors of production, and income distribution…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.9% of users find it useful
Macroeconomics - Demand and Supply
Read TextPreview

Extract of sample "Macroeconomics - Demand and Supply"

Download file to see previous pages Aggregate demand curve and aggregate supply curve are two of the most important terms associated with the field of macroeconomics. This paper focuses on these two areas of macroeconomics- Aggregate demand and supply curves and the reasons for the shifting of aggregate demand and supply curves.
Macroeconomics is one of the two major branches of economics and it is related to the performance and structure of the economy of any country. Macroeconomics focuses on the behavior and activities of the whole economy and is primarily concerned with various large scale indicators of the economy which include inflation, production, and unemployment rates of any specific country (McEachern, P. 98). The study of these indicators is done by the macroeconomists in order to understand the functioning of the whole economy.
According to Hughes and Perlman, unemployment is a very important phenomenon that is associated with cyclical fluctuations. The unemployment rate is the ratio of the unemployed people to the size of the labor force size of a country (p. 1). The labor force of a country consists of those people who are either employed or looking for a job but not have yet been employed anywhere. Unemployment is never good for the economy of a country because unemployed workers are often associated with loss of output and decreased income of a country.
Another significant indicator of a country’s economy is inflation which is related to the rate of change in the level of prices. Barro states that “by inflation, we mean a continuing upward movement in the general price level” (p. 237). Inflation is measured on a monthly basis when the rate of inflation is very high. The inflation rate is considered to be one of the most important forces of the economy that is weighed consistently on the value of a country’s currency. Changes in the rate of inflation affect the economy of a country because when the rate of inflation will be high, consumer prices will also get high which will result in an increased cost of living in the country (Snowdon and Vane, p. 3). Inflation is caused when the government of a country prints more than the required money and experiences various financial crises. Inflation is considered to be one of the greatest threats not only to the purchasing power of the people but also to the economy of a country. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(Macroeconomics - Demand and Supply Coursework Example | Topics and Well Written Essays - 1500 words - 1, n.d.)
Macroeconomics - Demand and Supply Coursework Example | Topics and Well Written Essays - 1500 words - 1.
(Macroeconomics - Demand and Supply Coursework Example | Topics and Well Written Essays - 1500 Words - 1)
Macroeconomics - Demand and Supply Coursework Example | Topics and Well Written Essays - 1500 Words - 1.
“Macroeconomics - Demand and Supply Coursework Example | Topics and Well Written Essays - 1500 Words - 1”.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Macroeconomics - Demand and Supply

MicroEconomics Supply and Demand

...Macroeconomics - Demand and Supply... Macroeconomics - Demand and Supply... ____________________________________________________________________________________ Chocolatiers Go for Valentine’s-Day Gold1 By: of the Student Article Summary With the onset of globalization, the Valentine’s-Day has evolved to be a Universal celebration. Going with the trend, the Valentine’s-Day is gaining popularity in Japan. Nothing could be more closely associated with the Valentine’s-Day festivities then chocolates. The week before the Valentine’s-Day is marked by massive sales of chocolates in Japan. To benefit from the propitious sales possibilities during the Valentine’s-Day, the Chocolatiers are leaving no effort unturned to provide the Japanese consumers, and...
3 Pages(750 words)Essay

Demand and Supply Analysis

...Macroeconomics - Demand and Supply... Macroeconomics - Demand and Supply... Demand and Supply Analysis Substitutes and complements Good Substitutes complements An airline ticket More cheaper airlines Onboard refreshments A mystery novel Required textbooks Marker pens A floppy disk Flash disk Floppy drives 2. a) Fig. 1: Demand and Supply curves 3. 4. 5. 6. 7. 8. 9. 10. 11. a) Demand and supply are equal at the points when equilibrium quantity is Q=200 units. It is also at this point when equilibrium price is also equal to P=200. This is as shown in the graph above. b) The relationship between the quantity demanded and the price is of negative relationship while that between quantity supplied and price shows a positive relationship. Quantity...
5 Pages(1250 words)Essay

Demand and supply theory

...Macroeconomics - Demand and Supply... Macroeconomics - Demand and Supply... Due Economic Theory of Demand and Supply Microeconomics generally deals with how the society allocates its resources in the most efficient way possible to alleviate human suffering. Through Adam Smith’s theory of the invisible hand, individuals in pursuit of own self-interests generates unintended demand that compel another bunch of individuals to react (supply the needs of the other side) with the expectation of being able to receive a (quantifiable/measurable) compensation package that leaves both sides better off. Economists are in agreement that prices and quantities are descriptively the most observable attributes of individual interests that interact within a market ...
4 Pages(1000 words)Term Paper

Supply and Demand

...Macroeconomics - Demand and Supply... Macroeconomics - Demand and Supply... Supply and Demand Supply and demand refer to an economic theory of determining prices in a market. The theory asserts that in a competitive market, the unit cost for a specified product will differ until it remains at a position where the amount needed by customers will be equal to the amount supplied by producers, leading to an economic equilibrium for quantity and price. There are four primary laws of supply and demand. First, if demand rises and supply remains unaffected, there will be a shortage causing a higher equilibrium cost. Second, if demand lessens and supply remains unaffected, there will be a surplus causing a lower equilibrium cost. Third, if demand remains...
3 Pages(750 words)Term Paper

Supply & Demand

...Macroeconomics - Demand and Supply... Macroeconomics - Demand and Supply... and Demand: An Analysis Although one might be quick to assume that the food and beverage industry, specifically the fast food industry, is one that has a relatively inelastic level of supply and demand, this is only partially true. As will be detailed within this short analysis, there are a number of factors that work on a systemic and local level to differentiate the levels of supply and demand so that even though they may not make wild swings in movement, they are nonetheless nearly continuously in flux. Accordingly, the following analysis will present an argument for the way in which supply and demand is fundamentally shifted within the student beverage industry at the ...
3 Pages(750 words)Article

Supply, Demand, & Equilibrium

...Macroeconomics - Demand and Supply... Macroeconomics - Demand and Supply... 04 July 2008 Supply, Demand, and Equilibrium The wage of a worker as with the price of goods in the market is determined by supply and demand. It should be noted that in the labor market, as with the goods market, some workers are “valued” higher than the others thus demanding the payment of higher wages compared to the employees in other profession. Using real world example, professional sports players are paid much higher than farmers, factory workers, engineers, and teachers even though all of them are generally in competitive markets. In order to assess this situation, this paper will conduct an analysis using the diagram of supply and demand. In the first case, it w...
2 Pages(500 words)Essay

Macroeconomics - Supply And Demand

...Macroeconomics - Demand and Supply... Macroeconomics - Demand and Supply... Nasser Al-Emadi Number: 201-004 Dr. Martin Sabo Supply and demand of commodities are concepts in economics, which are important to understand. Supply is mainly determined by the will of producers and manufactures to distribute products while demand is determined by the willingness of consumers to purchase a product. This paper will discuss the underlying factors, which affect supply and demand. These are prices, speculation, government policies, tastes and preferences, and changes in income. Introduction Supply and demand in economics are two concepts, which carry a lot of significance as they determine the success and profitability of any given business. Demand, in this...
7 Pages(1750 words)Term Paper

Supply and Demand

...Macroeconomics - Demand and Supply... Macroeconomics - Demand and Supply... and Supply Response to question A Elasti of demand is responsiveness of the demand of a good to the changes in other economic variables (Ferguson, 1972). As such, elasticity of demand is important since it helps to determine the potential change in demand due to variation in prices. In addition, understanding elasticity helps policy makers and businesses to examine the possible market impact when there is an adjustment in the consumer purchasing behaviors. It should be noted that, if a small price change is accompanied by a big change in the amount of quantity demanded then the commodity is said to be elastic while for a case where a large price change is accompanied by a ...
2 Pages(500 words)Essay

Demand & Supply

...Macroeconomics - Demand and Supply... Macroeconomics - Demand and Supply... and Supply Introduction The main theme of the article is the demand and the prices of housing in Scotland. The article mentions the fact that the number of properties that are available for sale is lower than the demand for housing among the people of Scotland. The demand for housing is not equal to the supply and hence the prices of housing in the country have skyrocketed. Experts are of the opinion that in order to bring sustainability in the market it is important for the builders to build quality homes so that the demand is adequately met by the builders. The lack of supply is because of the fact that there is lack of new houses in Scotland that would be ready for...
5 Pages(1250 words)Essay

Supply and Demand

...Macroeconomics - Demand and Supply... Macroeconomics - Demand and Supply... of Natural Calamity on Demand and Supply World events, for instance, drought and floods, have affected demand and supply trends in free markets tremendously. A notable example is floods that occurred in Pakistan (2010). As a consequence, there was increased pricing of cotton. Thus, it was attributed to the drastic reduction in supply; which subsequently led to increase in equilibrium pricing. The event in Pakistan had a shift on its supply curve, but did not affect the demand curve. However, there also exist incidents where change on the demand curve does not affect the supply curve (Krugman, Wells, & Graddy, 2013). The law of demand in economics states that with all aspec...
1 Pages(250 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 Coursework on topic Macroeconomics - Demand and Supply for FREE!

Contact Us