Fundamentals of Macroeconomics Paper
Desires and wants help represents a part of what economics stands for and the way people governors themselves in society. In today’s society the way a person lives helps the economy decides on the product of things that are produced for consumer’s way of living.
To help understand some of the fundamentals of macroeconomics these definition will give a clearer example of what macroeconomics stands for.
Gross domestic product (GDP) let you know the about the total market value of all products of good that have been produced in a year’s time. The real (GDP) will state the price of all the total goods that have been produced in that given year. ...view middle of the document...
Government interacts in a larger part of what, for whom, and how decisions are made in the economy.
The Massive layoff of employees affect the government, households, and business because when a person loss his or her employment this cause for a drop in the economy. The purchase of goods is put at a minimum on what that person would purchase on a regular base, this cause for a drop in tax revenue because spending has been reduced. When there is a massive layoff the government has to put more into unemployment by paying out more unemployment claims. Massive layoffs of workers causes for no taxes being collected on goods that would have been purchased.
Decrease in taxes affects the government, households and business; with the decrease in taxes it gives consumer more money for the household. With the decrease in taxes it increases the consumer disposable income. The decrease in taxes increase the tax revenue, because people are spending more money, and it make for a higher demand in products that the consumer is looking to purchase.
Taxes determine how the government influences the goods a consumer purchases. When more money is spent this helps to create more jobs, when there are...