The third in the series of Dr. Grossman's economic works, Activity 3-9 Macroeconomics addresses how monetary policy, including interest rates and other fiscal instruments, can affect activity in the economic system. In this book, Grossman examines a variety of different theories regarding how monetary policy, and the range of specific instruments, affects economic activity. One branch of this study considers the effect of monetary policy on demand. In this section, Grossman discusses what he calls the demand-side effect of the policy, which is the effect that increased government spending has on the demand for goods and services that typically consumers will have. Also discussed are concepts such as exogenous shocks, exogenous competition, exogenous elasticity of supply, and exogenous reinvestment.
The second chapter of this book looks into the relationship between economic growth and public policy. Grossman notes that public policies have been implemented not only to support economic growth, but also to protect American citizens from monopoly-style competition from other countries. Public policies are also adopted to address issues like the treatment of capital, the regulation of labor, and the regulation of financial institutions. Public policies can affect economic growth and the distribution of income and wealth in society.
Grossman next looks at the micro-level of an economy. Microeconomics, as he defines it, deals with the behavior of individuals and firms in minute details. A microeconomist looks into the economic activities of a department store, for example, and examines how the manager there thinks about investing, borrowing, production, and sales decisions. He also looks into how salespeople are managed, how customers are treated, and how marketing affects advertising. These are microeconomics, and they deal with all of the minute subtleties that make up any business.
Grossman then turns to macroeconomics, which is a type of economic theory that analyzes broad trends over time. All of the micro and macro aspects of a business combine to examine how the company will perform over a period of time. The scope of this study is nearly limitless. It could examine how a car manufacturer might do over a five-year period of time or a retail store that opens and does brisk business over a couple of months. The scope of macroeconomics is nearly as wide, and it covers everything from the stock market to interest rates to international trade.
Overall, the subject of micro and macro is so vast and important that it merits its own chapter in a college course. However, it is wise to take a quick look at just how these two forms of economic activity play into the decisions we make on a day-to-day basis. The decisions we make impact not only our personal lives but also the livelihoods of millions of other Americans.
For those of us who work in the public sector, such as teachers, doctors, or firefighters, being a teacher or a firefighter is about much more than just making the big bucks. It is about the intangibles that make a difference in how we see the world. When a fire breaks out in a school, for instance, it can kill a large number of students instantly and many more in the aftermath. A teacher who can connect with his or her students in this way may be able to help his or her students save their lives. Such an empathetic teacher is quite rare, and the lucky few are rewarded with raises, promotions, and respect in the business world.
One of the best things in life is seeing a smile on your parents' faces, and realizing that you are the reason. Just because someone else is not nice to us, doesn't mean we have to reciprocate in the same way. For every human in this world, God has given something noble and good in his heart. Always take care of your heart.
Do you know how to write an essay on macro and microeconomics? If not, then this article will give you tips on how to write a compelling essay on either of these subjects. The essay has become more important these days because the economy is in a state of stagnation. And while a lot ...
In Part One of this four part series, we looked at some of the different schools of thought that attempted to solve the question, “Who divided Economics?” Among these were monetarist monetarists, including such thinkers as Ludwig von Mises, John Keynes and monetarism. Other monetarists set out to demonstrate that, while price movements occurred ...