Compare macro and micro economics. For an economic equation C=a + bX, find A and B given by equation C. What are their payments?
Define three economic goals. What are their different ways of being achieved? Which goal is more important? Which goal have most benefit?
Different goals have different implications. The two goals of the minimum wage may be related to each other and so can the goal to reduce unemployment and inflation. So it is important to compare macro and micro economics. It is also important to find out the implications of every one of the objectives in the economic equation. For example, what happens when the government runs away with its fiscal policy? Who gets hurt? And what effect will it have on the macroeconomy?
To solve the problem, it is necessary to understand the economic theory of money and banking. How can this theory be applied to economic problems and to the goals that are to be achieved? Is there a relationship between monetary and banking theory and the macro economy?
The economic theory of money and banking can be explained by using only basic economic concepts. The first step is to understand what money is. Money can be described in different ways. One is gold, another is currency, and the last is cash. It can also be defined as a store of value.
In our view, the best explanation is that money is a way to store and control value. The value of the currency changes depending on supply and demand of money and the state of the economy. When the state of the economy is good and there is plenty of money in circulation, it has a high value. On the other hand, when there is a bad economy, people lose confidence in the money and so its value depreciates. until it reaches its original value.
Monetary theory helps us understand what is happening in an economic economy. It explains why certain amount of money is needed to achieve certain desired results, while other amount of money is not needed. It also explains the importance of fiscal policies. Fiscal policy helps the government to balance the budget and maintain a favorable balance between spending and saving.
So, understanding the role of fiscal policy is essential for understanding the role of macroeconomics. For example, if you look at a restaurant business, you will see that they must increase sales and decrease expenses in order to achieve a positive balance between profits and losses. Even in a corporation, the company's ability to save money is very important. The profitability of the corporation relies on the amount of money that the company saves through borrowing and investing.
So, what do you need to learn to compare micro and macro economics? There are many books, articles and websites that teach the subject. You can also attend a course or join a study group. Whatever you do, make sure you understand these basic facts and concepts and start comparing macro and micro economics.