Johnny Ch Lok

Measurement Consumer Behavioral Changing Economic Factors Johnny Ch Lok

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? Macroeconomics differs from microeconomics, which focuses on smaller factors that affect choices made by individuals and companies. Factors studied in both microeconomics and macroeconomics typically have an influence on one another. For example, the unemployment level in the economy as a whole has an effect on the supply of workers from which a company can hire. A key distinction between micro and macroeconomics is that macroeconomic aggregates can sometimes behave in ways that are very different or even the opposite of the way that analogous microeconomic variables do. Meanwhile, microeconomics looks at economic tendencies, or what can happen when individuals make certain choices. Individuals are typically classified into subgroups, such as buyers, sellers, and business owners. These actors interact with each other according to the laws of supply and demand for resources, using money and interest rates as pricing mechanisms for coordination?What factors Cause of recessions ?A recession implies a fall in real GDP. An official definition of a recession is a period of negative economic growth for two consecutive quarters. Recessions are primarily caused by a fall in aggregate demand (AD). This demand-side shock could be due to several factors, such as?A financial crisis. If banks have a shortage of liquidity, they reduce lending - this reduces investment?A rise in interest rates - increases the cost of borrowing and reduces demand?Fall in asset prices. - negative wealth effect leads to less spending?Fall in consumer/business confidence also exacerbated by negative multiplier effect.?Appreciation in exchange rate - exports less competitive?Fiscal austerity - when government cuts spending