Economy Essay Example | Topics and Well Written Essays - 1000 words - 1

Economy - attempt ExampleIn addition to that essay also evaluates the differences between consumption of wealth and economic classes development relevant example. On further note the essay analyses the impact of growing inequality on the U.S. macro economy.In order to define the consumption concept in macro economy, it plunder be take a firm stand that macro economy is considered to be extremely complicated which is observed to influenced by several factors. It assists plain to amount and forecast the total productivity of the country. Total productivity of a country suggests the economic status of the country among entire world. It set up be evidently asserted that multinationals used to evaluate its business opportunity done the ease of macroeconomic concept. Wages and profit is directly and indirectly related with macro economy. The concept double-dyed(a) domestic product is related with wages and profit that has been illustrated belowIn accordance with modern economist Lord John Maynard Keynes (2003), income and wages determine the volume of employment in an economy which eventually depends upon the train of effective demand (Keynes 1-14). Consequently, the level of effective demand can be determined through the help of aggregate demand kick the bucket and aggregate supply function. In case of two sector model, where government, industries and consumers atomic number 18 performing its operations, aggregate demand can be segmented in to two roles such as consumption expenditure and investment expenditure. Thus, it can be asserted that consumption expenditure is an important component of aggregate demand in an economy (Keynes 1-14).In order to define the concept of consumption function it can be asserted that consumption of a commodity depends upon the level of income. In addition with that it can be evidently asserted that there are many other factors which can influence income. Thus, it can be asserted that from the consumption