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Macroeconomics Essay

814 words - 4 pages

Fundamentals of Macroeconomics
Alkina Stone
June 25, 2014
Michael Peterson

Fundamentals of Macroeconomics
Whether one is experiencing a decrease in their taxes, is part of a massive layoff of employees, or is simply purchasing groceries, there is a resource flow from one entity to another and back again. Those entities cover government, businesses, and households. Most of persons’ daily activities affect government, households, and businesses. For example when you are buying groceries you are affecting government by paying taxes on all the items you are purchasing. You are also affecting the household of the famers that sold those groceries to the market. You are also ...view middle of the document...

Businesses also benefit from this because now they do not have to pay as much in taxes and customers are more willing to buy their services or products due to the lowered tax rate.
The effect of immense discharges of employees is practiced on the conclusions such as government, household, and business. The majority who is affected by the layoffs are households. It alters the entire household as some families will double to single income or single to nothing. Businesses development will surely decrease as an outcome of substantial layoff from the time when people who generally shop will no longer have money to purchase goods that are not needed. Due to this the government will experience a decline in the economy because of the decrease in overall taxes.
All of these activities are directly related to each other. Groceries come from farmers, the groceries to supermarkets such as Cardenas, and from there they go to us, to our households. Even if we do not know it we are fueling the economy with everything be buy or do not buy. All our decisions are based on our personal economic state and the country’s economic state. All our decisions affect the next person. If you buy your products from one store rather than another, you are making that store more profitable than the other store.
Consumers are what make up the economy if no one is buying services and goods than the economy will not be good. That is why...

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