econ202 discussion 1 b - Consumption and Savings refers to...

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Macroeconomics is set to help us better understand the full nature of the economy on a national scale and how the government is involved (Saylor.org, n.d.). Two macroeconomic variables that would effect the business environment would be Unemployment and Consumption/Saving. Unemployment effects business because if someone is not working they would not have money to spend on certain products thus causing sales to go down and contributing to the decline of the economy. Luckily in America the government has programs in place to keep these families feed and able to survive until they are back on their feet, such as welfare, unemployment benefits and food stamps. Unemployment has been a growing problem the last few years due to the economy declining to failing banks and wall-street, unfortunately many people take advantage of this and use these benefits as a way of life rather then a steeping stone to get back on track and that is called Unemployment Insurance Fraud (DC.gov, n.d.).
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Unformatted text preview: Consumption and Savings refers to people who have money but tend to be more thoughtful on what they do with it, such as going out to spend buying certain things or saving it in the bank for the future or a child college fund. Saylor.org (n.d.) states " decisions that households make in various contexts--such as decisions concerning consumption, savings, investments in education and training." People around the world are planning out their futures and will not just spend their money so easily and that has an impact in the business environment. Just like when gas prices went up people were not as likely to go driving far places all the time because of it and that would hurt business all around the nation that normally rely on tourists. Chanvichet Chey DC.gov. (n.d.). Unemployment Insurance . Fraud Retrieved September 8, 2015. Saylor.org (n.d.). ECON202: Intermediate Macroeconomics . Retrieved September 8, 2015....
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