The Fundamentals of Macroeconomics
Matthew Crow
ECO/372
University of Phoenix

The Fundamentals of Macroeconomics can be explained in a couple of different ways ranging from how patrons purchase the food they live off of, and what store they choose to shop at. Along with companies having massive layoff seasons, and the government decreasing of taxes. There are various ways the economy is impacted, these are the areas we will address, and what the effects have on government, businesses, and households. Think of the flow between these three entities as a revolving door, there is a cycle that can be seen. Grocery stores can range from a general store that carries your dry goods, such as flour, beans, and sugar. To larger stores such as Walmart or Target that carry a variety of products from toys for children, and furniture for your living room. These super stores make it hard for the smaller stores to succeed in an open market. When a consumer makes a purchase from a store they are giving that store revenue. Revenue is considered profit and gives the stores information on what people are interested in. This way the store knows what to keep in stock and what isn’t selling. Now that the store has a decrease in product they need to purchase more product from the manufacture, in turn provides the delivery of the product that uses gas and oil for transportation. When consumers make purchases there is a sales tax on the item or good provided. This tax is then used to provide wages or payment to road construction, schools, or any other government agency that relies on taxes to provide their payment. The almighty dollar circulates from an employer to a household, from the household to the grocery store, and from the grocery store back into the government, hence the revolving door. Which brings the point, if companies have massive layoffs, or go out of business causing