A macroeconomic view of economic matters looks at business and industry in the macro-level of detail. Macroeconomic factors affecting business (production processes, price, etc.) can be viewed as the sum total of all the macroeconomic factors affecting the production, distribution, allocation, and allocation of resources.
In a macroeconomic perspective, macroeconomic factors affecting business are considered to be a “self-sustaining” system in which all the elements that affect the production and distribution of goods and services are operating in a positive feedback loop. When one element in the loop fails, the other elements automatically adjust to compensate for it. The end result is a productive and efficient enterprise. In this way, there is little room for profit-maximization and little room for any kind of organizational change, either in the short or in the long term.
If the business cycle theory is applied to macroeconomic theory, then microeconomic factors affecting business cannot exist without having previously been influenced by the macroeconomic theory and the consequent macroeconomic effects. For example, if there are negative macroeconomic forces operating on a firm that is causing it to cut costs and produce lower quality goods and services, the firm will need to adjust its production process to reflect these macroeconomic forces.
In the business cycle theory, the business cycle is caused by forces operating on a macro level that cause the rate of production of a firm to change. These forces operate on both the long and short term, as the rate of production of a firm changes from one cycle to another as the macroeconomic forces operating on the firm are re-evaluated, changed, or otherwise reworked. As a result, the rate of production in each cycle of the business cycle varies.
The business cycles, which are the macroeconomic forces that cause the business cycle, have been described by macroeconomic theorists as either a “business cycle” or a “microeconomic cycle.” While each of the cycles can last anywhere from six to twelve quarters, the first cycle only lasts for about four quarters. As these cycles occur, the changes in the macroeconomic forces affecting the firm create the effects on the firm at the level of the firm. At the higher levels of the firm, it creates new macroeconomic forces that alter the microeconomic forces that affect the firm.
Microeconomic perspectives, on the other hand, look at the microeconomic forces that affect the firm at the level of the firm. The microeconomic forces are those that are affected by the macroeconomic forces at the macroeconomic level. In macroeconomic theory, the microeconomic forces are the results of the macroeconomic forces.