Fundamentals of Macroeconomics

ECO 372

Fundamentals of Macroeconomics

The U.S. economy consists of three major sectors: government, businesses, and households. Each of these entities play a very important role in the economy and each move from either group have a significant effect on the other. Businesses supply goods and services which are sold to governments and households. In order to produce these goods businesses rely on households to supply the labor for which they are paid. When these interactions are put together the result is the goods market. The relationship between each sector impacts the growth of the nation's Gross Domestic Product (GDP).

The purchasing of groceries has a great impact on households, businesses, and government. Households are more likely to hurt behind this...