Ifechukwu Anunobi

MBA 21.
Assignment .

1. Having explained the current global economic challenges what are the current
macroeconomic aggregates affecting business
2. List the macroeconomic aggregates
3. . how do these trends affect the household the firm and the government
4. What policy measures do you think individuals have at their disposal to address the
macroeconomic aggregate you have identified
5. what policy measures do you think firms have at their disposal to address the
macroeconomic aggregates you have identified
6. What are the options on the part of the government

The current global economic challenges

Inflation
Increasing budgetary constraints
the issue of living expenses
The COVID-19 pandemic is still present
Russia's invasion on Ukraine

Bringing Down Inequality and Poverty

Reducing poverty and inequality remains the top objective for policy in our time. The United
Nations canters it on its pledge to "leave no one behind" in its 2030 Agenda for Sustainable
Development. Over the past 25 years, there has been a considerable decline in extreme
poverty and international inequality. In addition, there has been a noteworthy rise in intra-
country inequality, mostly because of gains in wealth and income at the very top, whereas
sub-Saharan Africa still maintains a high prevalence of extreme poverty.

The Development of a Sustainable Economy

The ongoing degradation of our natural environment puts human survival in jeopardy. This
is especially true in the case of climate change, which is one of the greatest threats to
humanity. We must address this threat through adaptation and mitigation of climate
change. This calls for major changes to our economic structure, like reducing our reliance on
fossil fuels and preparing for extreme weather. According to the bigger goal, a sustainable
economy "meets the demands of the present without endangering the capacity of future
generations to satisfy their own needs."
what are the current macroeconomic aggregates affecting business?

Instead, of focusing on specific people or businesses, macroeconomics studies the economy.

Geopolitical issues and budgetary issues are just two examples of how macroeconomic
factors impact the national economy. Inflation, unemployment, interest rates, and
economic production are just a few of the macroeconomic factors that have an impact on a
company. Populations rather than individuals are typically impacted by these
macroeconomic variables. A population is impacted by factors like inflation and
unemployment rates. Additionally, by examining how firms and governments operate and
how they raise money, they serve as indications of how the economy is doing. Because firms
can recruit more people, unemployment rates will go down if a country is able to control
inflation. The government will be able to raise enough money, and the currency will be
robust. Regulations and taxes are other microeconomic issues.

Business operations are greatly influenced by macroenvironmental elements like GDP,

employment rates, private consumption, inflation, economic deficit, and monetary policy.
Based on these variables, governments and organizations plan their policies. Decision-
making, strategy, and a company's growth are all impacted by macroenvironmental issues.

The rate of inflation,

the unemployment rate,
the interest rate,
the level of the economy

List the macroeconomic aggregates

Economy-wide savings
Investment
economic expansion
monetary creation
the ratio of capital output
population expansion
Increasing overseas trade
Payables balance
Import loan
Exchange rate consistency
degree of employment
financial inflow
Income per capita as a measure of economic progress.

.
how do these trends affect the household the firm and the government?

The government.

The foundation for the forthcoming discussion on the macroeconomic policy will be laid by a
few of the most important macroeconomic goals of the government.
First, a government would often strive for economic growth and development at a
sustainable rate, which permits an improvement in living standards without creating undue
structural or environmental hardship. Second, a government that prioritizes price stability
will aim for steady levels of low to moderate inflation rather than zero inflation, with most
governments setting their sights on 2 to 3 percent as an acceptable level of inflation. By this
standard, in 2013 nations like China and the US were experiencing relatively acceptable
levels of inflation.
A country may have a current account surplus or deficit in any one year, but equilibrium in
the balance of payments means that the long-term values of exports and imports are about
equal. This is not frequently regarded as a significant concern unless it lasts for a long time
or is a sign of structural economic issues. Finally, we talk about income and wealth
inequality. While determining a fair distribution of income and wealth is difficult and does
not require deciding on a set figure, if a small minority in society holds a disproportionate
amount of these resources, this could potentially result in societal unrest.
The primary macroeconomic goals of the government that will direct our consideration of
macroeconomic discontent and government satisfaction

The household.
Higher macroeconomic uncertainty causes families to spend less on non-durable goods and
services in the months that follow as well as to buy fewer expensive items like package
vacations or luxury brands.

The Firm
GDP, fiscal policy, monetary and fiscal policy, inflation, employment rates, and private
consumption all have an impact on the macroenvironment. Business decisions about items
like spending, lending, and investment are impacted by the macroeconomic environment.

What policy measures do you think individuals have at their disposal to address the
macroeconomic aggregate you have identified

Fiscal policy, monetary policy, and exchange rate policy are the three main pillars of
macroeconomic policy. This short describes the characteristics of each of these policy tools
and the various ways in which they might support steady and sustained growth.