1)If you were looking to invest into the manufacturing industry of the US, which macroeconomic variables would you examine?

2)How do macroeconomics affect a business?

3)How do macroeconomics affect an individual?

4)What is international risk sharing in macroeconomics?

1)If an investor is interested in the US Manufacturing Industry, following macroeconomic variables should be examined:

1) Economic Growth (GDP Growth Rate) - A growing economy is a good measure of the overall health of the economy. It implies that businesses, in general, are also growing or at least have the potential to grow.

2) Inflation Rate - Inflation measures price movement. Inflation within the Federal Reserve's target also indicates a healthy economy. But should inflation rate start to rise rapidly (hyperinflation), the economy is likely to be in jeopardy. The opposite is also true. If the nation is experiencing deflation, it means general prices are going down and businesses are not likely to prosper with declining prices.

3) Unemployment Rate - High unemployment rates is a sign that the economy is not doing well. Note that the manufacturing sector relies on consumers for income. Consumers tend to hesitate on spending when the labor market is not doing well.

4) Purchasing Managers' Index (PMI) - This index summarizes the overall state of the manufacturing sector. It is an indicator of the business activity within the sector. There is a contraction in the industry if the index is below 50 and an expansion in business activity when it is above 50.

2)Macroeconomic variables depict economic conditions of an economy. The condition of an economy influences individual businesses in a number of ways -

1) Changes in interest rates - Change (rise or fall) in interest rate affect business activities. Demand for businesses like houses, cars increases when interest rate falls because consumers take more loan for purchase of such goods. With lower interest rate people take more loans and buy more of such goods.

2) Taxation - Increase in taxes reduces consumer spending and thus demand of goods (having high income elasticity) also fall. On the contrary when taxes reduces, these goods face higher demand.

3) Unemployment rate - With higher unemployment rate, business activities slower down as total demand reduces and vice versa.

4) Inflation - Increase in general price level reduces the real worth of money and 

3)Macroeconomics affect individuals in the following ways -

1) Consumer decision and choice - When any change takes place in any aggregate variable (that are studied under macroeconomics), individual as a consumer gets influenced and his choices change. For example, with increase in government deficit, financed by taxes, consumers consumption may decline. An individual may reduce the consumption of comfort goods, such as he may give up the idea of buying a new refrigerator for personal use. Inflation also reduces the consumption of an individual because of decrease in real worth of his income.

2) Investment decision - An individual saves a portion of his income and invest it. Depending upon the state of various markets of investment (like stock market, gold market, land market), decision of an individual as an investor changes. For example, due to depreciation of currency, gold prices may rose. This would encourage investors to invest in gold than stock market.

3) Work related decision - A worker, in times of economic prosperity, may give up some wages for leisure. But in times of increasing unemployment and economy slowing down, the same worker would prefer to work for more hours at cost of leisure.

4)Macroeconomics involves the study of how the limited resources are utilized by a whole economy in production of goods and services for consumption. Economies can be those of state or even the world. The overall decisions concerning the economic factors affecting the whole economy are made. The economic factors affecting the state include the total national earning, the rate of employment, inflation and deflation rates and the total worth of the goods and services produced in the state among others.

International risk sharing in macroeconomics involves dividing or sharing of risks associated in trading of goods and services between the different countries involved. It provides insurance services to citizens of different countries. Therefore, they exchange their commodities freely without fearing the risks associated with those commodities.