Explore BrainMass

Macroeconomic analysis concerns

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

I understand that there are three primary concerns in macroeconomics analysis that include: inflation, output growth and unemployment. The only thing I do not understand is the motivation behind these concerns. Can you explain please?

© BrainMass Inc. brainmass.com October 25, 2018, 7:29 am ad1c9bdddf

Solution Preview

In fact, these are major concerns in any economy.

Inflation is the erratic increase in the prices of goods and services. Abrupt changes of prices of goods and services may result to either reduction in the sales of commodities or a reduction in workforce. Inflation erodes money's purchasing power. A 10% increase in price will result to a corresponding 10% reduction in a currency's purchasing power. The real monetary value of the salaries of workers goes down during inflation. This is a real concern. Business people that sell products that are perfectly competitive will find it hard to compete and may decide to stop operations altogether. ...

Solution Summary

The solution shows the concepts of inflation, output growth and unemployment in macroeconomics analysis.

See Also This Related BrainMass Solution

Macroeconomic Analysis on a Foreign Currency

Please help with providing a macroeconomic analysis of Brazilian currency against the U.S. Dollar over the five year period starting in 2005 and ending in 2010. I also need four independent online sources/references.

View Full Posting Details