Publisher's Synopsis
Macroeconomists develop models explaining relationships between these factors. Such macroeconomic models, and the forecasts they produce, are used by government entities to aid in the construction and evaluation of economic policy, by businesses to set strategy in domestic and global markets, and by investors to predict and plan for movements in various asset markets. Given the enormous scale of government budgets and the impact of economic policy on consumers and businesses, macroeconomics clearly concerns itself with significant issues. Properly applied, economic theories can offer illuminating insights on how economies function and the long-term consequences of particular policies and decisions. Macroeconomic theory can also help individual businesses and investors make better decisions through a more thorough understanding of what motivates other parties and how to best maximize utility and scarce resources.It is also important to understand the limitations of economic theory. Theories are often created in a vacuum and lack certain real-world details like taxation, regulation and transaction costs. The real world is also decidedly complicated and their matters of social preference and conscience that do not lend themselves to mathematical analysis. Even with the limits of economic theory, it is important and worthwhile to follow the major macroeconomic indicators like GDP, inflation and unemployment. The performance of companies, and by extension their stocks, is significantly influenced by the economic conditions in which the companies operate and the study of macroeconomic statistics can help an investor make better decisions and spot turning points. ⦁ Specific Areas of Crime rate increasing, due to poor macro economy environment influences Macroeconomics is a rather broad field, but two specific areas of research are representative of this discipline. The first area is the factors that determine long-term economic growth, or increases in the national income. The other involves the causes and consequences of short-term fluctuations in national income and employment, also known as the business cycle, such as researching whether recession will cause crime rate rising issue. Economic growth refers to an increase in aggregate production in an economy. Macroeconomists study economic growth with an eye toward understanding the factors that either promote or retard economic growth in order to support economic policies that will support growth, development, and rising living standards. Growth is commonly modeled as a function of physical capital, human capital, labor force, and technology. So, when economic growth is raising, then unemployment rate will decrease in possible. ⦁Business Positive or negative Cycles andthe country's macro economic environment is good and bad relationship A long term macroeconomic growth trends, the levels and rates-of-change of major macroeconomic variables such as employment and national output go through occasional fluctuations up or down, expansions and recessions, in a phenomenon known as the business cycle. ⦁ Macroeconomics vs. Microeconomics, what can influence crime rate more?
