1)What are the assumptions underlying the three macro models for establishing long-run economic growth?

2)Explain macroeconomics in simple terms.

3)How does human behavior affect the socio-economic dimensions of macroeconomic society?

1)The assumptions in the macroeconomic models for establishing long-run growth are:

1.) In the long run, the model is designed in nominal terms. It includes the effect of inflation in cost or revenue.

2.) Another assumption of the macroeconomic model is the risk-free interest rate. The minimum expected return of investors is estimated by using risk-free assets.

3.) When the borrowings are in foreign currency or if there is any source of foreign capital, exchange rates are a relevant concept.

2)Macroeconomics is the branch of economics that is concerned with the conditions and the occurrences regarding the economy as a whole. Unlike microeconomics which explains the events surrounding firms and households, macroeconomics deals with issues affecting the economy at the local, national, and global scope. The main concepts under macroeconomics include:

• Output and income. Output is the total amount of goods and services produced by a country over a specified period such as a year. Income is the revenue generated from the sale of the outputs.
• Unemployment. The rate of unemployment is the percentage of people who are in active pursuit of jobs. Macroeconomics is concerned with measuring and minimizing the rate.
• Inflation and deflation. Inflation is the continuous rise in the prices of goods and services over time while deflation refers to the decline in the prices. Macroeconomics provides the tools to measure, assess, and align prices affecting the economy.

3)The study of economics (particularly microeconomics) is very much associated with the study of human behavior and allocation of scarce resources. Each and every economy is influenced by various social-economic factors. All kind of economic activities is associated with socioeconomic elements.

We know that the behavior of individuals and human resources are very much affected by the element of ethnicity and culture, which eventually changes the demand differences of consumers.

This microeconomic concept of individual and consumer behavior creates the base to study the macroeconomic dimensions and effects of human behavior.