Category: Macroeconomics

Venezuelas Macroeconomic Crisis of 2015-2019 Venezuela was once the richest country in South America where its economy was supported by large oil reserves. Its oil accounted for more than 90% of its exports and the Venezuelan government relied heavily on the sales. The oil exports were also a way to provide the country with imported…

Macroeconomic Trends and Their Impact on the Life of the Average Person At its most basic level, macroeconomics studies the interaction among the main aggregate economic variables such as: unemployment, inflation, interest rates, exchange rates, etc. It also simplifies and summarizes the interactions between the structures of the economy of an entire nation, taking into…

Overview of the Brazilian Economy Brazil is an upper centre salary country located in South America with a populace of 195 million individuals The Net National Income (NNI) per capita in (2010) was $9,390  this was well over the upper centre salary normal of $5,884  can Brazil (one of the BRIC nations) get…

Reflections on Whether Macroeconomics Needs Microfoundations Word economics derives from the Greek word meaning management of the household  an inherently derivation. The Lucas Critique (1976) triggered the recent movement within the economic discipline toward macroeconomic models needing microfoundations  a movement which has led to the removal of IS/LM models from undergraduate textbooks. We…

Exploring Macroeconomics: Understanding Economic Systems and Implications Introduction: An economy is a large set of interrelated activities of production, consumption, and exchange that help determine how limited resources are distributed. The production, consumption, and distribution of goods and services are used to meet the needs of those who live and work within the economy, also…

Understanding Macroeconomics and its Impact Introduction to Macroeconomics When the price of a product you buy, like milk or gas, goes up, it affects you. But have you ever wondered why the price goes up? Is the demand greater than the supply? Or does the cost go up because of the materials that are needed…

Inflation and Consumer Behavior: Macroeconomic Insights Macroeconomic Aspects of Inflation and Deflation In today’s times, the economy needs to react according to the trends set by consumers and society. This fluctuation is called inflation and deflation. Inflation in itself is defined as the “continual rise in the price level” of goods (Colander, 2013). When items…

Microeconomics of Airline Ticket Pricing and Price Discrimination Last-Minute Airline Ticket Prices: A Microeconomic Perspective on Opportunity Cost and Buyer Behavior Why do airline ticket prices skyrocket when you purchase them at the last minute when most other operations and retailers do the opposite? They sell them at a discounted price to get rid of…

Exploring Economic Principles: The Macroeconomic Insights of “I, Pencil” The Pencil and Macroeconomics: In macroeconomics, we watched a documentary. The documentary is about a pencil. The pencil is your best friend that we can use to write and to draw. The graphite with the pencil lightly writes on the paper. The eraser with the pencil…

Complex Web of Macroeconomics: Navigating Scarcity, Equilibrium, and Choice Introduction: Economics is part of our everyday life. Even though we do not notice, many actions and decisions we take are related to economics. Our need for goods often exceeds the actual things that we are able to attain. All of us, rich, poor, or wealthy,…