Detailed Examination of Macroeconomic Variables and their Impact

This report delves into the realm of macroeconomic variables, examining their profound influence on economic performance. It explores key concepts such as fiscal and monetary policies, alongside supply-side economics, to provide a comprehensive overview. The report analyzes the effects of economic factors like interest rates and exchange rates on financial investments. It then examines the aggregate demand and supply model, elucidating their interaction in determining overall economic supply and demand. Furthermore, the report highlights vital economic indicators such as GDP and CPI, explaining their roles in assessing a nation's economic health and the cost of living changes, respectively. The conclusion emphasizes the interconnectedness of these factors and their collective impact on a country's GDP, particularly highlighting the influence of exports on economic growth, as evidenced in the report.

Macro-economic
Variables

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Effects of economic factors.........................................................................................................1
The aggregate demand and supply model...................................................................................1
Economic indicators....................................................................................................................2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Macroeconomic involves monitory policy, government policy, fiscal policy and supply side
economics. The company does not have powerful economic due to elections (Abedkhani,
Mousavi and Majdzadeh Tabatabai, 2021). Organization's real gross domestic product rate has
been increased from 0.8% to 3.3% which is unexpected for the business.
MAIN BODY
Effects of economic factors
These factors affect the finance (investment) value in the future. It refers to interest, tax rates,
government rules and policies etc.
 Rate of interest: It applies on loans that autumnal at different times in the upcoming
days. It varies on degree and duration of risk. When it is low i.e. investment lean to be
high because investment is sufficient to make the cash flow that has to be pay and repay
the borrowings.
 Rate of exchange: It is a rate at which price of one currency is change into another
country's currency. It can be fixed and floating. Import and export of the goods and
services should be continuing for the GDP of the domestic country. Company's GDP has
been increased due to higher exports (Cosmas, Chitedze and Mourad, 2019).
The aggregate demand and supply model
This model examines the interaction with total demand and supply at the macroeconomic
level. It decides the overall supply and demand for the economical. When price of a product has
been changed but it does not affect the supply or demand of the consumption it means a good is
elastic and it influence the supply or demand due to changes in the price then it is inelastic.
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Aggregate supply: This curve examines the relationship between the price and quantity of the
goods and services. At the time of upward slopping short term curve tells the positive
relationship amongst price and GDP. When the output level of price increases while input level
of price fixed then the slope ups.
Aggregate demand: It refers to overall expenses and spending on domestic goods and services.
The downward slopping AD curve shows the relationship b/w outputs of price level and
quantity.
Economic indicators
 GDP: It refers to the value addition which is defined why the production of goods and
services in a country during a fixed time. If the GDP is high, then nation's economic
conditions is good (Saber and et al., 2022).
 CPI: It denotes the changes in prices paid for products by user for a specified month. It
measures the living changes of the cost of consumer.
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CONCLUSION
The above report can be concluded that aggregate demand and supply affects the GDP of the
country. If the demand is high but supply is low, then price of the product rises and vice versa.
Due to higher export to another country company's GDP has been increased.
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REFERENCES
Books and Journals:
Abedkhani, R., Mousavi, S.N. and Majdzadeh Tabatabai, S., 2021. Study the effects of tax shock
on macroeconomic variables in an oil economy with the approach of Dynamic
Stochastic General Equilibrium (DSGE). Quarterly Journal of Economic Growth and
Development Research, 11(43).
Cosmas, N.C., Chitedze, I. and Mourad, K.A., 2019. An econometric analysis of the
macroeconomic determinants of carbon dioxide emissions in Nigeria. Science of the
Total Environment, 675, pp.313-324.
Saber, M and et al., 2022. Investigating the response of the total welfare index to the shock of
macroeconomic variables in Iran (Recursive Dynamic Computable General Equilibrium
(RDCGE) Model Approach). Economic Growth and Development Research.
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