Macro economists attempt to analyze and predict the behavior of the overall economy in terms of interest rates, government spending, taxes, inflation and unemployment. There is often an emphasis on the relationship between financial institutions and businesses in the form of banks, insurance companies, credit unions and so on.
The macro approach is not limited to the United States alone. It’s an international discipline with some of its earliest origins tracing back to the Great Depression when international cooperation was first sought after to help recover from the crisis.
The focus of macro economics in the US has been on reducing the size of the Federal government and the Federal Reserve. The US is one of the few developed countries that do not have a national income tax. This has caused the US economy to become more dependent on consumer spending, which has led to increasing inflation and the current recession.
This has created a need for the US government to take care of the debt owed to foreign creditors and stimulate the economy by reducing deficits through deficit spending. In addition, a large number of financial institutions are in need of bailouts, especially those who are failing because they have run up large amounts of unsecured debt.
Micro economics is not concerned with all areas of public policy, but it focuses mostly on personal consumption. This is because it deals with the individual consumer’s economic activity, rather than the larger institutions like the Federal Reserve and the Federal government. Micro economics deals primarily with individuals’ individual consumption decisions. For example, this can be seen in things like car purchases, house payments, clothing purchases and so on.
Many of the things we consider essential such as food, gasoline, housing, utilities, education and medical care are covered in Micro economics. This is because these items are more geared toward the micro level. The macro level is the more macro level, including international trade, financial institutions, international trade agreements, international economics, national budgeting and international banking.
Micro economics covers a broader spectrum of topics that include the behavior of economies at a national and regional level. The macro is typically very much focused on the economic system in the larger economies. In a micro economy, all of the issues associated with a micro economy can be seen at a national level, which makes it much easier to see the trends and patterns in the overall economy as opposed to a national economy that is more localized.
The primary focus of Micro economics is the economy at a consumer level, so many individuals are unaware of how the macro and the micro interact together. In fact, many macro economic experts believe that it is the macro that can actually be traced back to a micro economic system, which is the result of a national government spending money that results in rising deficits. When a national government spends too much money, this will lead to economic problems that require a large amount of borrowing money from a major financial institution, such as the Federal Reserve, which in turn causes inflation.
As a result of inflation, interest rates increase, and a lower price of goods and services will be experienced by the consumer. Many people will find their spending decreases, causing a drop in income that may in turn cause unemployment, decreasing demand for goods and services. This causes the country to experience a recession.
In the US, most macro economic experts agree that it is easy to spot the effects of a national economic recession or depression from the outside of a national economy, but a lot harder to gauge what is going on from a macro level. Some believe that it is important to use macro economic indicators as a guide to local economies to gauge trends and fluctuations, which can be used by local economic analysts as well. Local economic indicators may not be as reliable as national indicators because they are typically more localized, but they are used for a lot more than just predicting a national economic recession.
Micro economics is often used by the government to predict a problem before it becomes a problem in order to prevent it before it is too late. This is because the effects of a national economic depression or recession can be felt across the country as a domino effect of all areas of the country being affected at once. A national economic depression is more likely to happen if there is widespread unemployment in a large area, and the effects can spread to the whole country if the same happens on a smaller scale.