Micro and Macro Levels of Economic Performance (Coursework Sample)

Micro and Macro Levels of Economic Performance
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It is commonly believed that the Micro stage executive performance in general and business stage performance in particular is hard to develop in the nation in view of the lusterless Macro Economic processes. As exterior issues do have influence on the executive and business operation, it is the increasing impact of Micro level organizational and business operation that also provides for into the Macro level operations (Tisdell & Hartley, 2008). It is as a result of this entangled connection, all duty for dismal Micro level operation cannot be allocated to the Macro Economy. By any chance, the Macro Economy too will be either as strong/weak as its Micro components are. Consequently, while the Macro Economy does necessitate sound organization, the micro components also, need to be handled according to the modern principles of management. These modern principles include expectation and reaction to external factors in broad and economic factors in particular as an important component of organizational administration (Onyemelukwe, 2005).
Micro Economics normally deals with the behavior of individual economic units regarding resources. These units include the consumer, workers, and owners of land and business investors (Szirmai, 2004). It explains how and why these units make economics useful, for example, and it explains how consumers make purchasing choices. Micro Economics investigates how individuals in the society choose to allocate scarce income or resources among competing wants or production objectives. It also studies factors that affect the relative prices of different goods and factors of production in the individual markets such as the supply and demand for milk or motor vehicle. Macro Economics on the other hand deals with collective economic variables such as the level and growth rate of national productivity, price increases and the cumulative demand by all consumers for all the goods and services produced in an economy over a year or some other period.
Macro Economics tries to deal with the relationship between these aggregate variable, for example, trying to identify what happens to the general price level when the unemployment rate increase. The macro level of economic performance is the explanation of how the aggregate variables such as employment, national output and prices interact and interconnect to produce the state of our national economic situation (Forss, Marra & Schwartz, 2011).
There is generally a clear connection between the Micro and Macro Levels of Economic Performance in that, the collective production and consumption levels are as an outcome of preferences made by individual households and firms and some macroeconomic variables clearly make this association (Carlin, & Soskice, 2006). In spite of these two studies of economics appearing to be diverse, they are essentially mutually dependent and accompany each another since there have many common characteristics / issues between them. For instance, ...