Share
Explore BrainMass

Influence of Macroeconomic conditions on microeconomic ones

In your own words, based on experience in business, add your explanation. Thanks.

A) Are microeconomic conditions influenced a lot or a little by the macroeconomic conditions? And visa versa?

B) Do you think that managers manage differently if they are at a for-profit verses and not-for-profit company?

C) Some times economic theories do not seem applicable to the real world or a real situation. Does that mean that the theories is no longer valid? What are your thoughts?

Solution Preview

A) Are microeconomic conditions influenced a lot or a little by the macroeconomic conditions? And visa versa?

Yes, macroeconomic conditions do influence microeconomic conditions and vice versa. Both are highly interrelated. If the microeconomic indicator shows the results at the level of individual economic agent, the macroeconomic indicators measures the performance at the level of national economy. Whereas Macroeconomics looks at the "big picture", microeconomics delves into the study of supply and demand and factors that impact individual consumer decisions. However, the two are inherently interrelated, as small decisions at the microeconomic level will ultimately have an impact on larger economic factors that influence the entire economy.

Similarly, aggregate performance of ...

Solution Summary

Are microeconomic conditions influenced a lot or a little by the macroeconomic conditions?

$2.19