1)What are some surprising applications of concepts from microeconomics?

2)What are possible solutions of macroeconomic problems?

3)How would you explain Macroeconomics to a complete neophyte in five minutes?

1)The main applications concepts of macro-economic include:

• Analyzing markets. The study of microeconomics is used in determining the type of markets in different industries. The common ones include oligopoly and perfect competition. Basically, the markets are distinguished based on levels of competition, the number of buyers and sellers, and freedom of entry in the markets.
• Analyzing market mechanisms used in establishing markets prices. It through micro economic knowledge that people understand the various processes of determining the prices of different commodities in diverse markets. The mechanisms include the interaction of the forces of demand and supply. The government also regulates the markets of goods and services through various strategies such as price ceiling and price floors.
• Microeconomics is used in determining how to allocate scarce resources to achieve optimal satisfaction. In other words, micro economic knowledge is used in solving the problem of scarcity due to the existence of limited resources and unlimited wants.

2)

The main solutions to macroeconomic problems include:

• Implementation of aggressive expansionary monetary and fiscal policies. Basically, expansionary tools help to augment the supply of money in order to boost economic activities like investments and aggregate demand. Notably, the duo plays a vital role in solving the challenge of unemployment as investments and the need for more production create job opportunities.
• Use of contractionary fiscal and monetary tools to maintain inflation at its lowest or healthy levels. The tools contract the supply of money with the aim of controlling inflation and its adverse effects on the economy. Besides, the tools aid in maintaining economic stability by regulating inflationary pressures.
• Enhancing political stability and good governance that is capable providing subsidized education as well as improved infrastructure. Political stability and availability of skilled labor attracts investors and also enhances the national output of a country. Subsequently, increased productivity leads to economic growth, which helps to eliminate poverty because of improved living standards.

 3)

Macroeconomics is a branch of economics which is concerned with the behavior of the aggregate economy. The study seeks to understand the cause and possible solutions to various economic problems such as inflation, unemployment, and economic growth. Macroeconomics also determines the performance of the economy and further analyzes the main drivers of economic growth.

Macroeconomics is primarily concerned with the bigger picture of the overall economy. The branch of economics analyzes how different economic sectors relate as well as their influence on the aggregate economy. Notably, the relationship of the various sectors is better understood with the help of economic models which use economic forecasts. The study helps economists to come up with ideal solutions to broad issues affecting the economy. Some of the solutions include the use of fiscal and monetary policies to promote economic growth, reducing levels of unemployment, and dealing with inflation. Macroeconomics differs from microeconomics in that the former studies the performance of the aggregate economy, while the latter is limited to the behavior of households and firms.