Economics: Microeconomic And Macroeconomics

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Introduction Economics in general, is a social science that study agents (firms , people , nations ) choices , and how they use scarce resources to satisfy their scarcity ( unlimited wants ) , and incentives that effect and reconcile their choices that have been made. Economic is divided into two sections or two major points, and they are: Microeconomic, Macroeconomic. Regarding our project we are mainly concentrated on Macroeconomic, where it concern itself within market system that operates on large scale. Moving on Macroeconomic is defined as, the study of performance of the national economy and the global economy. In other simple words it attempts to measure, understand how an economy works, perform, and how the performance can be…show more content…
The purpose of fiscal is to stimulate the economic growth during recession, and keep the inflation low as possible. Another meaning being able to stable the economic growth. while avoiding the boom-bust cycle, which is the (recession phase). Continuing fiscal policy have two forms that we distinguish between they are either (contractionary , or expansionary) .And according to the article statement , the fiscal policy that should be used will be expansionary fiscal . (EFP) has taken a place within the UAE, and that’s due to governance high spending to increase oil production over the years. This policy is defined as a macroeconomic or fiscal form that is used to promote higher GDP. In other words it’s the increase in the level of aggregate demand or aggregate supply in the…show more content…
If the government reduces taxes, the theory assumes that individuals and businesses will use their tax savings to buy more goods and services. That increase in buying will blaze the economy to produce more of the goods and services that consumes are demanding. More demand, therefore, brings about more output and productivity. Moving on if the government increases it’s spending, then the increased demand from the government alone can be enough to prompt producers to increase their production to meet this new demand. The hypothesis is that if you build aggregate demand, then an increased productivity will come. And concluding from this theory that after the increase in aggregate demand drives up production in the economy, the theory predicts that the labor market will be the next beneficiary. As producers increase their production and expand their operations to meet the new demand, they will, in theory, also hire new workers to support their growth. In addition the major factor that is actually helping and supporting the unemployment decrease is women joining the labor market because in the past they weren't so much believed in working like now thoughts and culture are changed and in fact women are doing so much better than men nowadays. In today's economy, one criticism of this theory comes from the increasingly powerful role technology is playing

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