WHAT IS MACROECONOMICS l ASSIGNMENT

Running head: MACROECONOMICS
Macroeconomics
Name of the Student
Name of the University
Author Note

MACROECONOMICS
Table of Contents
Section 1:....................................................................................................................................2
Answer to Q1.a...........................................................................................................................2
Answer to Q1.b..........................................................................................................................2
Section 2:....................................................................................................................................3
Answer to Q2.a...........................................................................................................................3
Answer to Q2.b..........................................................................................................................3
Requirement i)............................................................................................................................3
Requirement ii)...........................................................................................................................4
Requirement iii).........................................................................................................................4
Section 3:....................................................................................................................................5
Answer to Q3.a...........................................................................................................................5
Requirement a)...........................................................................................................................5
Requirement b)...........................................................................................................................5
Requirement b)...........................................................................................................................5
Answer to Q3.b..........................................................................................................................6
Answer to Q3.c...........................................................................................................................6
References list:.........................................................................................................................10
References list:.........................................................................................................................11

MACROECONOMICS
Section 1:
Answer to Q1.a.
Decision making is the process of choosing any particular course of action from the
available alternatives. There are two important aspects of the decision making which involves
the environment where people has to decide and the intended objective for which decision is
to be taken. People makes decision based on few principles such as subject matter, structure
of organization, communication system, sufficient time and analyzing the alternatives.
Decisions should be made with adequate time and communicating the proper information
along with analyzing the merits and demerits of possible alternatives (Nakamura and
Steinsson 2018). While taking any decision, the impact of the decision should also be studied.
Answer to Q1.b.
Principles of interaction among people is the interaction of the firms and households
in the market for particular goods and services. Such interaction shapes the basic sides as it
mainly involves the social interaction. On other hand, principle of interaction among the
economy as a whole is summing up of all the decision makers activities. That is interaction of
economy is about the interaction of the markets guided by the preferences and belief.
Interaction of the economy as a whole emerge from the interactions between the demand and
supply that deals with the negotiation in the price (Fiedler and Costantini 2018).
Section 2:
Answer to Q2.a.
It is stated by the law od demand that an increase in quantity demanded would result
in fall in the commodity price and vice versa, while all the other things remains unchanged.

MACROECONOMICS
That is, in accordance with the law, there exist an inverse relationship between price and
quantity.
Quantity demanded
(units)
Price per unit
100 20
120 18
150 12
180 10
200 5
80 100 120 140 160 180 200 220
0
5
10
15
20
25
20
18
12
10
5
Quantity demanded
Price
The chart shows the negative relationship between quantity demanded and price of the
product as indicated by the downward slope.
Answer to Q2.b.
Requirement i)
Events shifting supply curve or demand curve or both is that except for the changes in
price, there would be changes in all the other factors impacting demand. Demand curve might
shift due to increase in demand resulting from increase in income of the consumers. Supply
curve on other hand would shift due to increase or decrease in the production.