Macroeconomic Impact on business operations Free Essay, Term Paper and Book Report
Macroeconomy is influenced by many factors. These factors are analyzed with many economic indicators that tell us how the economy is functioning overall. These factors also help consumers, firms and government make better financial decisions. Consumers and firms use these factors to forecast if expanding production is feasible. Governments turn to macro economy to make budget spending, creating taxes, deciding on interest rates, and making policy decisions. When looking at these factors, macroeconomists focus on GDP (gross domestic product) in which measures the national output, unemployment, and inflation. In order to get a complete understanding of macroeconomics and how it impacts business operations, we must understand how money is made and the monetary policy. We also need to understand how the monetary policy will affect issues such as inflation, unemployment, and interest rates.
Unemployment
The unemployment rate gives macroeconomists an idea of how many people from the labor force are unable to work. Macroeconomist believe that when the economy goes through a grow......
Word Count: 1238
Page Count: 4.9 (250 words a page / double spaced)
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