Fundamentals of Macroeconomics

Fundamentals of Macroeconomics

Macroeconomics examines the structure and performance of the economy. Economic theory states that we live in a world of scarcity; we do not have enough natural resources or time to fulfill our unlimited desires. Economics studies how we allocate our scarce resources. Therefore, this paper wills many fundamentals of macroeconomics.

Unemployment rate is a rate in which citizens are not working but looking for employment. Inflation rate is a rate in which prices of goods and services are increasing such as gas and groceries. When inflation occurs consumers have a difficultly purchasing products and services. Interest rate is a rate that is set by the lender on the repayment of a loan. They are usually called APR annual percentage rates. Interest rates are determined by the borrower’s ability to repay the loan and credit worthiness.

Purchasing of Groceries or food in the grocery industry is broken into three categories. The categories are beverage manufacturing, food manufacturing and groceries affects the government because the government sets the tax limits and these products. The beverage manufactures non-alcoholic beverages, food manufacturers transform livestock and agricultural products into products for intermediate and final consumption, and household goods and manufactures paper products, soaps, and toilet preparations (Unknown Author, 2011) “Relative to the entire economy, the grocery manufacturing industry was directly responsible for approximately one percent of the total U.S. economic activity, measured in terms of jobs, labor income, and GDP” (Unknown Author, 2011) . “Relative to the U.S. manufacturing sector, the grocery manufacturing industry was directly responsible for 14.3 percent of U.S. manufacturing employment, 10.7 percent of manufacturing labor income, and 10.7 percent of value added” (Unknown Author, 2011). The grocery manufacturing benefits household