Demand is the rate at which consumers want to

buy a product.
Demand depends upon 2 factors: taste and ability to buy.
Taste, which is the desire for a good, determines the
willingness to buy the good at a specific price. Ab
ility
to buy means that to buy a good at specific price,
an
individual must possess sufficient wealth or income
.
Both factors of demand depend on the market price.
When the market price for a product is high, the
demand will be low. When price is low, demand is hi
gh.
At very low prices, many consumers will be able to
purchase a product. However, people usually want
only so much of a good.
SUPPLY:

supply is the amount of something that producers is willing to provide to the marketplace
supply refer to anything in demand that is sold in a competitive marketplace, One of the
most important factors that affects supply is the good’s price. Generally, if a good’s price
increases so will the supply.
https://www.wiley.com/college/miles/0471988456/sample_chapters/ch01.pd
f

• Economics is the study of the allocation of

scarce resources
• Macroeconomics studies relationships and connections between one
country and another

• https://www.tutor2u.net/economics/reference/what-is-macroeconomics

• http://designguggenheimhelsinki.org/stageonegallery/view/#!
 • The few of the factors which are influencing
macro economics are :
• 1. Employment and Unemployment
• 2. Inflation
• 3. The Trade Cycle
• 4. Stagflation
• 5. Economic Growth
• 6. The Exchange Rate and the Balance of
Payments.
• Interest Rates
http://www.economicsdiscussion.net/macroeconomics/6-major-macro-economic-
issues/20641
 Economic Growth
• Economic activities refer to the level of buying and selling activities
happening in an economy over a time period, Economic activity is
not constant and can change rapidly, Economic activity changes
could happen due to the following reasons:

• Changes in income levels Future prospects of individuals.

• The level of economic activity in the world as a whole of Political
activities
• Natural disasters - like hurricanes, earthquakes, or flood etc
• Changes in prices of raw materials - oil, metals, fuel, energy and so
on
• Changes in world stock markets

• Fluctuation In the economic growth influences macro economics

 Inflation:
• It refers to a situation of constantly rising
prices of commodities and factors of produc-
tion over a specific period of time.
• to produce more goods and services , the
firms will have to incur higher costs of
operations.

• So During inflation some people gain and

most people lose, which impacts on economy
 Employment and Unemployment:

• Unemployment refers to involuntary idleness

of resources including manpower.
• If this problem exists, society’s will be less
than its actual output.
• So its an important objective to ensure full
employment which implies absence of
involuntary unemployment of any type, so
that economy wont disturb.
https://www.bayt.com/en/specialties/q/14888/list-some-of-the-most-important-
macroeconomic-factors-affecting-businesses-today/
 Gdp
https://corporatefinanceinstitute.com/resourc
es/knowledge/economics/gdp-formula/
g- gross (total, local, goods and
•
services
GDP includes only goods and services produced within the
geographic boundaries of a country,
• is calculated either by measuring all income earned within a
country, or by measuring all expenditures within the country, which
should approximately be the same.
• Gdp is used by Politicians, economists, large companies (especially
multi-nationals)
• Gross Domestic Product represents the economic production and
growth of a nation and is one of the primary indicators used to
determine the overall well-being of a country’s economy and
standard of living. One way to determine how well a country’s
economy is flourishing is by its GDP growth rate. This rate reflects
the increase or decrease in the percentage of economic output in
monthly, quarterly, or yearly periods.
 GNP, or
• GNP includes income earned by citizens and
companies abroad, but does not include income
earned by foreigners within the country
• The difference between GNP and gross domestic
product (GDP) is that GNP includes the value of
products made by a country's citizens and
companies abroad, while GDP only accounts for
products made within a country's borders.
However, GNP excludes the value of products
made by foreign companies within the reporting
country.
https://www.thebalance.com/what-is-the-
gross-national-product-3305847
• Gross national product is the value of all goods and services made
by a country's residents and businesses, regardless of production
location. GNP counts the investments made by U.S. residents and
businesses, both inside and outside the country. In other words, it
computes the value of all products manufactured by domestic
companies, regardless of where they are made.

• GNP doesn't count any income earned in the United States by

foreign residents or businesses. It also excludes products
manufactured in the United States by overseas firms.

• The formula to calculate the components of GNP is Y = C + I + G + X

+ Z.
• That stands for GNP = Consumption + Investment + Government + X
(net exports, or imports minus exports) + Z (net income earned by
domestic residents from overseas investments - net income earned
by foreign residents from domestic investments.)
 net national product
• NNP(Net National Product) is the amount which comes after the
minus of depreciation in the gross national product (GNP). This is
known as depression.
• it is the leftover value of goods and services which your country’s
residents have after you have accounted for the depreciation which
is caused by consumption or deterioration of assets over time.
• NNP = Gross National Product – Depreciation

• NNP= GNP- Depreciation

• NNP= GDP+ NFIA- Depreciation
• NNP= NDP+ NFIA
• NFIA(net factor income from abroad).