Macroeconimics

macroeconimics What is macroeconomics? You may have already studied microeconomics, which looks at preparation, prerequisite and prices for individual goods. Macroeconomics looks at the bigger picture and involves the study of the delivery as a whole. National income Let us set about by looking at a simple model - a two sector economy made up of households (consumers) and firms (producers) -and use this to wax the idea of national income. To start with we will ignore the jounce of government policy and overseas sectors. Households ultimately own the factors of production, e.g.

, labour, materials and capital, and supply these factors to firms who use them to produce goods and services. In return households earn rewards for provision the firms with the factors of production e.g., wages and interest on capital. These rewards are in turn used to buy the goods that the firms have produced. This process is cognize as a circular flow- see sort 1. Figure 1: Simple circ...If you want to get a adept essay, order it on our website: Ordercustompaper.com

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