Question

Choose a real residential community of more than one person.
Describe its macroeconomy.
Treat the community as though it were a country.
If people don't want to disclose information, select another community.

Answer these questions:

What kind of governance does your community have?
E.g. homeowner's association, SCU and dorm administration, city government.
How are financial decisions made?

Calculate the GDP and its parts:
List on a table, and enter the totals of income from all sources, including wages, loans, scholarships, and gifts.
You don't need to list the individual persons' incomes.
List and describe the categories (consumption, investment) and totals of spending, including tuition and housing, and savings.
List the purchase and sale of foreign assets such as a bank account.
Include total income and GDP income and spending.
List these in tables, and then provide relevant explanations.

Have there been any investments?

Answer 1

Ans) As per the scenario mentioned above, let us consider a situation which a real residential community exists, and thus we shall go ahead and have careful look at it's macroeconomy and factors associated.

So, we shall look at the economy as if it were under the control of a city government, in which the financial decisions are made keeping in mind the basic necessities of it's people, factors required to maintain the standard of living, the environment of the community, factors affecting the household and ones lifestyle, and developmental projects that are to be carried for the upliftment of the community. Along with the finances are to be taken care of, which are the basis of any decision making, such as the cash flows, balances, inventory, stocks available, including the fixed income and so on.

Moving ahead with the GDP and the variables included in it;

​​​​​​Along with this, we can understand from the following table, the break up of total spendings as to how the community makes use of the total income and amounts accumulated.