Microeconomics Today

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Recommended: Effects of monetary and fiscal policy

Macro and Micro: Economics of Today
Understanding the economics of our time, we have to first differentiate between the two. With Macroeconomics, the government can regulate the buying and selling of products, foreign or domestic. With Microeconomics we can also regulate the buying and selling of products, within the confines of the companies that produce the items we use on a daily basis.
Microeconomics in the United States-
Microeconomics is the branch that observes the actions of independent or a conglomerate in review of actions that the economy makes. Microeconomics has an impact on local businesses, that are part of the small economy of a city or a town. The politics of Microeconomics, is what makes our country tick. Small businesses …show more content…

Their function is to make sure that fees, taxes, tariffs, subsidies and expenditures are done according to the rules.
Our government has set up a system that keeps them and us accountable, yet able to work within the confines of those regulations. It is the checks and balances that keep the country from going under. They regulate the Gross Domestic Product, which tells the consumers what the yearly use of an item is. They also pay out subsidies to farmers to grow only one kind of crop. In 2008, a stimulus package was sent out to millions of Americans, so that the economy would boost with the spending of that money to keep the country from going into another Depression again. The Macroeconomics also helps with the prediction of many things. Employment, or the lack thereof, the inflation or the deflation of the dollar, and the labor laws that help keep things fair for the citizens of this country. With the new minimum wage happening in some states around the country, the inflation of prices in merchandise and services would go up. This is determined by Monetary Policy and Fiscal Policy. Monetary policy controls the banks supply of currency, the inflation rates, and lowering or raising the interest rates to keep the economy

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