Economics

[Name if the Institution]

Economics



Introduction

Economies strive to achieve growth and development by emphasizing its influence on multiple factors that may include the unemployment rate, literacy rate, inflation rate and so on. There are different policies that need to be planned effectively to ensure that the economic is stable and successful in achieving growth through increasing its gross domestic product. Policies are needed to be set that target the unemployment rate, economies should strive to increase the total output that will increase the employment and the purchasing power of individuals will increase this will result in an increase in demand that will benefit producers and motivate them to make further investments thus enabling the development of the economy. However an increase in demand may also lead to increase in prices this would result in higher inflation rate thus it is crucial to control the money supply and other factors that might lead to increase in inflation rate in the economy.

Macroeconomics deals with a broader perspective of the economy it tends to determine the prices that prevail in the economy as compared to microeconomics that deals with determining prices of a single firm or market, macroeconomics analyzes the economy as a whole, it deals with economic issues such as, the value of total output produced in an economy- Gross Domestic Product (GDP), unemployment and inflation rate that have an impact over the whole economy (Bernanke, 2011).

Discussion

Economies deal with a number of issues that reflect their economic performance in the world, these issues may include, increased unemployment, higher illiteracy rates, higher rates of inflation, lower economic growth as a result of fall in GDP, deficit in the balance of payments and many other factors it is crucial for economies to develop effective policies that will enable them to achieve development faster and improve ...