The Macroeconomic Choices - 1693 Words

Macro-Economic Choices Introduction Over the last several years, the budgetary challenges of the federal government have been increasingly brought to the forefront. This is because of the tremendous amounts of spending and the stagnant economy is creating a situation where there are large budget deficits. Over the course of time, this is causing the national debt to increase dramatically. To fully understand what is taking place requires focusing on: the three major categories of revenues, the three areas of expenditures, studying the current debt levels, providing recommendations, looking at different macro-economic indicators and discussing steps that can help to improve economic growth. Together, these different elements will provide the greatest insights as to how the policy decisions of lawmakers are having an impact on the economy. What are the three major categories of revenues for the federal government? Please comment on each and indicate their relative importance to each other. Relative importance can be indicated by dollar amounts, percent of total revenue or expenditure or, though less informative, by ranking. The three major categories of revenues for the federal government include: individual income taxes, corporate income taxes and social insurance taxes. All three of these areas are interconnected with each other. Individual income taxes are the largest category with this accounting for 49.97% to 52.28% (between 2008 and 2014). Corporate incomes taxesShow MoreRelatedEconomics Affects Our Daily Life1576 Words   |  7 Pagesdistribution, market structure etc. Question 1 Economics can be classified into two main branches, which are macroeconomics and microeconomics. Macroeconomics refers to study of economic aggregates (aggregate demand, aggregate supply etc.) while Microeconomics refers to study of behavior and performance of individual parts of economy such as firm or household. Macroeconomics Macroeconomics includes studying the determination of national output and its growth over the long time. It also applies toRead MoreSupply and Demand Simulation983 Words   |  4 PagesConcepts† This paper will speak about macroeconomics and microeconomics principles, Paper will also refer to shift of the supply curve and shift of the demand curve. Also how the how concepts of Microeconomics and Macroeconomics help understand the factors that affect shifts in supply and demand on the equilibrium price and quantity, and last how the price elasticity of demand affects a consumer’s purchasing and the firm’s pricing strategy. Microeconomics and Macroeconomic Principles According to ColanderRead MoreFinal Project Part I Milestone One: Supply, Demand, and Market Equilibrium855 Words   |  4 Pagesinputs (or factors of production) and fixed and variable costs involved in the production of your chosen product or service. 2. 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We will start with a brief introduction of what we will review, and then briefly hit on the subject matter in a bit more detail. â€Å"The world’s largest and most diverse economy currently faces the most severe economic challenges in a generation orRead MoreEcon 2301 Study Guide1079 Words   |  5 PagesECON 2301: Principles of Macroeconomics Hennessy ECON 2301 Principles of Macroeconomics Time: Th 7:05 pm – 9:45 pm Synonym: 40512 Section: 023 Room: NRG2 2120 Instructor: Gregory Hennessy Office: NRG PB3 Hours: Th 6:30 pm – 7:00 pm Th 9:45 pm – 10:15 pm And by appointment Phone: Email: Course Description Principles of Macroeconomics deals with consumers as a whole, producers as a whole, the effects of government spending and taxation policies, and the effects of the monetary policy carriedRead MoreLaws of Supply and Demand1244 Words   |  5 Pagesspecifically wrong about, while macroeconomics concerns things economists are wrong about generally. Or to be more technical, microeconomics is about money you don’t have, and macroeconomics is about money the government is out of† (Beggs, 2014). On a serious note however, macroeconomics and microeconomics are different from each other yet both play a crucial role. The Atlantis simulation gave a great example of the two important aspects of economics, microeconomics and macroeconomics. This simulation showedRead MoreA Report On The Supermarket Wars1211 Words   |  5 Pages The main purpose of this report is to make references to significant microeconomic models, in order to explain the supply, Demand, Market equilibrium, price discrimination, and Opportunity rate as well as making references to important macroeconomic aims which can be described with some examples such as growth, Inflation, Unemployment, GDP, exchange rates and many more, this two business economic topics are very relevant in today’s market as they represent the real-world meaning of the businessRead MoreEco 365 Supply Demand Paper1082 Words   |  5 Pagesthat occur within the market in Atlantis. The following details such examples as microeconomics versus macroeconomics, equilibrium pricing, and what drives the elasticity of the market price of the two-bedroo m apartments that are available for rent in Atlantis. The study of microeconomics focuses on the impact of individual choices that are made within the economic market. In contrast, macroeconomics is the study of the entire economy as a whole. One example in the simulation of microeconomics was