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Fundamentals of Macroeconomics

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Fundamentals of Macroeconomics

Lucas Gonzalez

Course/Number

March 23, 2015
Dr. Yi

Fundamentals of Macroeconomics

Each of the economic activities that will be discussed in this assignment has its way to effect government, households and businesses. Each activates will have my personal example so the paper may seem more past tense phrases. Now, this is just some of the activities but the economic has much more than just mentions in this article unfortunately I will not be covering everything just and overall picture for the assignment itself. The three examples that I will be using are purchasing of groceries, massive layoff of employees and decrease in taxes.
Economic Activates When we buy groceries from the stores, this can affect the government by the amount of taxes collected from the actual purchase. The more a person buys in groceries, the more money the government can collect taxes. Every household is affected when buying groceries; depending on the household’s collective income will determine how much a family can buy in supermarkets. Of course, we all know families with a higher earning potential tends to buy more items when going groceries storing. The results in this are that the more one family can spend the more taxes collected by the government. For example in my personal life, my wife needed to make a career change due to the work environment was starting to make her sick. So she ended up leaving a month later and started her new job but it was a setback for us on the income side, and we ended up taking a pay cut of about 900 to 1000 dollars. That made us looks more in our finances and had to stop going out to eat as much. Now don’t think it is a bad thing spending a considerable amount of money when purchasing groceries it also helps the businesses. The grocery store is the company that will benefit from the groceries

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