Essay on The effect of the macro-economy - 1035 Words

External Influences The Macro-economy The production and exchange process of the whole economy as opposed to individual markets within the economy. Businesses are affected by changes in the macro-economy and by government processes towards the macro-economy. Government economic policies change a lot. (E.g. labour made bank of England independent on their first day in office.) Instead of dividing the economy into different sectors (e.g. retail, cars etc) we look at the economy of the country as a whole. Government Macro-economic objectives: †¢nbsp;nbsp;nbsp;nbsp;nbsp;Control of inflation – 2.5% †¢nbsp;nbsp;nbsp;nbsp;nbsp;Maintain full employment-all who want a job can get one. †¢nbsp;nbsp;nbsp;nbsp;nbsp;Control of†¦show more content†¦Providing a service to other countries, e.g. leasing out ships to other countries, tourism) The bigger the gap between imports and exports the worse. Ideally exports should be higher than imports, but as Britain doesn’t make a great deal of things to export it could result in trouble. China will make more and more to export. Full Employment †¢nbsp;nbsp;nbsp;nbsp;nbsp;Full Employment- Used to be a job for all, now a job for all those who want one. Affected by economy-if economy is good, more jobs, if you are going through a recession then that is not the case. If you are over 21 the minimum wage is  £4.85 for over 21’s, for under 18’s just  £3. †¢nbsp;nbsp;nbsp;nbsp;nbsp;The EU convention of Human rights, Article 23 states that everyone has the legal right to work. This means that if the person doees not have a job through no fault of their own, they must be compensated for. This is why must governments have a state system to provide for them. †¢nbsp;nbsp;nbsp;nbsp;nbsp;In U.K there is a period of time where you get unemployment benefit linked to housing and family sizes. After an unemployment of 6 months, if you want to keep unemployment benefits you must sign up for training or education. †¢nbsp;nbsp;nbsp;nbsp;nbsp;Full Employment differs from what it used to mean, it used to mean everyone should work but now it means what it says above. †¢nbsp;nbsp;nbsp;nbsp;nbsp;The ‘Poverty Trap’ is where you get benefits,Show MoreRelatedOpec Oil Embargos Effects on the Macro Economy2031 Words   |  9 Pages Economic Effects In October of 1973, OPEC announced that it would increase the price of oil by 70% by cutting production by 25% and a production cut of 5% each month after (Yurgin). At the time, oil was selling for $3. This shock caused the price to increase to $5.12 (Reid). Two days after this initial shock, the price increased again to $11.65. This would cause a new aggregate supply curve left of the original supply curve (decrease in supply). This didn’t have a great effect on demand becauseRead MorePresidential Elections Are Not Isolated From National Or World Macro Events931 Words   |  4 Pages Presidential elections are not isolated from national or world macro events, macro events across the nation and the globe play out with untold influence on economies and stock markets. International macro events are countless; they can even have an impact at a state level in the U.S. Below are a few examples of international macro events as derived from the California Department of Financ e (CDOF) website â€Å"Chronology of Significant Events†: †¢ Global conflicts †¢ Foreign energy resources †¢Read MoreBenefits And Risks Of Mass Digital Adoption994 Words   |  4 Pagesphenomena. I want to develop and test theories about the economy-wide impact of digital technologies. My (micro)empiricist side – built working with Amy Finkelstein at NBER and Edward Miguel at UC Berkeley – tells me to trust data more than anecdotal evidence. 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Chossudovsky has try to reveals problems inherent in a global, cheap-labour economy taking evidence from sub-Saharan Africa, Japan and North America, thisRead MoreAssess the Likely Impact of Uk Government Labour Market Policies on Any Three Macro-Economic Objectives. Refer to the Information and to Your Own Knowledge703 Words   |  3 Pageslikely impact of UK Government labour market policies on any three macro-economic objectives. Refer to the information and to your own knowledge (30) Labour market policies are government programmes that intervene in the labour market to help the unemployed find work. The three macro-economic policies I am going to look at are: full employment, steady sustainable economic growth and low inflation. Full employment is the point in an economy, where everyone who is willing and able to work is in a job.