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Mod 7 DQ

Mod 7 DQ

Q Based on this module week's summit session, what would you say is the role of firms in our macroeconomy? Do consumers indirectly and/or directly affect our macroeconomy? Discuss how microeconomics and macroeconomics affect the flow of money within the Circular Flow Model. Do you think firms could operate without households? Describe how these disciplines relate to the Circular Flow Model. Locate a recent article or event (published within the last year) that highlights your relevant microeconomic/macroeconomic topics. Use the Hunt Library, newspapers, new stations, or other credible sources to discuss how your topic aligns with microeconomics. Include the following in your discussion: • State the article or event you selected. • Identify the microeconomic/macroeconomic concept(s). • Describe your findings. • Analyze the relevance to real-life applications. Summarize your findings using at least 250 words and provide a minimum of one reference. Use current APA formatting to document your sources.

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From the Circular Flow Matrix which represents how an economy works it is pretty clear that the firms play an important role in the economy. The firms are the micro-units of a business. They are the producer of goods and services but play the role of a consumer in the resource market. On the other hand, households are the supplier in the resource market but a consumer in the product and service market. Consumers play an important role here. They create the demand side of the product and service market and can affect it directly. If we