Macro and Microeconomic Definition

Macro and Micro economics economy are the two main branches of the economy. Microeconomics is the branch that focuses on how individuals, households, and organizations make their decision to distribute limited resources, usually in the market who saw the trade in goods or services. Micro-economic study how these decisions affect the general supply and demand for commodities and services. As we know, the supply is one factor that determines the price, which in turn, determine the supply and demand for goods and services. Micro economics is also commonly referred to as the view "bottom-up economy" (bottom to top), or how people deal with money, time and resources available.

Microeconomics focuses on supply and demand and other forces that determine price levels seen in the economy. For example, microeconomics would look at how a specific company could maximize production and capacity so that it can lower prices and better compete in its industry.

Theory of Monetary

Monetary theory is a subarea of ​​macroeconomics that describes the relationship between the stock of money and the macro economic system. Monetary theory analyzes the role of money in macroeconomic system in terms of money demand, money supply, and the natural tendency of the economic system to adjust to the point that balance supply and demand money, the point called the monetary equilibrium. A phenomenon such as inflation can be associated with an excess supply of money on demand, cause each unit of money to buy less. Theoretically, the system of macroeconomic balance and blend for one condition necessary for macro-economic balance is a monetary equilibrium.

Monetary theory assumes that the money supply set by the monetary authority, and can be changed if necessary in the public interest because of the demand for money is naturally beyond the control of public officials. Aggregate income determines the amount of money households and businesses plan to spend in the near future. And money can be used for short-term and long term.

Money ownership households and businesses will not be required to purchase in the near future can be invested in long-term assets (stocks and bonds), which earns revenue.

Simple Cash Flow Management

If business is the body of human, then cash flow is the blood that keeps the body awakes. Cash flow is important thing and crucial for business, big or small of business. Without a good management of cash flow, many business, although profitable business, can be end up in bankruptcy because cash-in and cash-out situation is not balance. The amount of cash in is less than the amount of cash out at monthly.

These simple steps below can help the balance of cash flow.

Prepare cash flow projections for the future (next month or year). It will help the firm to avoid problem by giving a warning before the problem comes. Projections are made by noticing the factors such as customers' payment, suppliers' payment, upcoming expenses, and upcoming incomes.

Public Finance

Public finance is a field of economics concerned with paying for collective or governmental activities, and with the administration and design of those activities. The field is often divided into questions of what the government or collective organizations should do or are doing, and question of how to pay for those activities. This definition of public finance is based on www.en.wikipedia.com.

The purview of public finance is considered to be threefold: governmental effects on

1. Efficient allocation of resource,
2. Distribution of income, and
3. Macroeconomic stabilization.

The proper role of government provides a starting point for the analysis of public finance. In theory, under certain circumstances private markets will allocate goods and services among individuals efficiently (in the sense that no waste occurs and that individual tastes are matching with the economy's productive abilities).

Personal Finance

According to www.en.wikipedia.org, personal finance is the application of the principles of finance to the monetary decision of an individual or family unit. It addresses the way in which individuals or families obtain, budget, save, and spend monetary resources over time, taking into account various financial risks and future life events.

Components of personal finance might include checking and saving accounts, credit cards and consumer loans, investments in the stock market, retirement plans, social security benefits, insurance policies, and tax management.