Fundamentals of Macroeconomics

In: Social Issues

Submitted By gstephanie1979
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Fundamentals of Macroeconomics
By Stephanie Casillas
ECO/372
June 12, 2015

Macroeconomics is the study of the economy as a whole. In this summary we will discuss how a few economic activities, such as purchasing groceries, massive layoffs, and decreases in taxes affects each activity and how it relates to each other, and the economy as a whole.
The food industry is one of the largest industries that are involved in our economy today. When consumers buy groceries, it helps with maintaining jobs in the economy, as well as tax revenue for some states, and the government. The better the prices that are on food, the better off the households can afford to buy more, which in turn provides more money for labor, and taxation.
Massive layoffs can affect many people in many different areas. If a household experiences a layoff, than they will have a decrease in wages, and thus in turn has less money to buy groceries. This means that a family might have to purchase fewer items, than before when they had a higher wage. If food prices are high this will make it even harder for the household to purchase food, and they might end up, not buying as much. This is an issue that I know all too well about. Most families today are not living on a wage that is livable. Food prices have sky rocketed, due to the cost of fuel, and corporation greed. We have families making $40.00 a day to pick the produce, in markets such as Publix Grocery Stores, yet cannot even afford to buy groceries themselves. When families experience layoffs, then not only are the households affected, but so are other elements of the economy, because they have less purchasing power. When a household cannot purchase items, which have gotten more expensive to buy for a business or a corporation, due to other elements that are affecting the economy, then the business losses profits. When the business than loses…...

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