The impact of macroeconomic decisions concerning Social Security and microeconomic choices of the individual.

The impact of macroeconomic decisions concerning Social Security and microeconomic choices of the individual

Running Head : Macroeconomic

The impact of macroeconomic decisions concerning Social Security and microeconomic choices of the individual

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Abstract

In to understand how entire economy works comprehensively , people need to consider both macro and micro level of economics . This is due to in deciding individual choices they need to consider several aspects before making decision . In line with this suggestion , this will discuss the impact of macroeconomic decisions concerning social security

br and microeconomic choices of the individual

In the microeconomic choices fir individual , the discussion focuses on pricing issue since it is an important for retailers since it predicts and determines the destiny of our merchandise whether it is salable like a glass of coke in the summer or slump like ice corn in the winter . In addition , we also take an example for describing the microeconomic choices in supply and demand of Pepsi Cola

The impact of macroeconomic decisions concerning Social Security and microeconomic choices of the individual

Introduction

Generally , there are two broad areas of economics study they are microeconomics and macroeconomics . Macroeconomics , at one hand , observe the big picture of economy since the study focuses on the discussion of national economy as a whole while providing a fundamental knowledge of how things work in the business world . For instance , scholars who deal with macroeconomics would discuss the impact of wages , interest rates inflation to the business world

Concerning the macroeconomic issue , there is a relation between several factors . Recession , for example , is a weird economy activity that happens not only to developing countries but also to superpower countries like United States . Consider the 1990 's situation

During the whole one-year period , the U .S . economy experienced undulating unemployment rates . In May , the country counted over 119 .9 million of job vacancies available throughout the nations . Five months later , in October , the situation turned upside down when more than 500 ,000 workers lost their jobs . Within the same period , after the eight years of steady growth , the real output declined for some time until the end of the first quarter in 1991 . In addition , U .S . also experiences high inflation in 1979 (11 .3 ) and 13 .5 in 1980

Unemployment and inflation are not solely the matter of U .S economy since other countries also experience these phenomena . The great depression in 1930 was a good example of worldwide impact on unemployment . While in 1970 , most countries experienced a high inflation due to the increase in the oil price . The vast availability of unemployment is one of countries ' major enemies besides inflation since they both are potential to increase the growth of criminal actions

At the other hand , microeconomics consider smaller picture of economy in a country and is likely to focus on the discussion of supply and demand theory and the underlying facts behind the pricing strategy of particular products and services

However , to understand how entire economy...