Let us analyze a few economic activities in the light of macroeconomic principles.
Purchasing of Groceries: The purchase of groceries is a part of consumption expenditure. If the purchase increases, the demand for grocery products will increase that will increase its price. The businessmen dealing with groceries will increase their production and this will further increase employment in this sector. If groceries are a major item in the consumption basket the increased purchase of groceries will have a positive impact on the economy as a whole. The profit of the businesses involved in groceries will rise. The income of the employees will also increase. The increased income will further increase the consumption Continue reading...
