Using the terms macroeconomics and microeconomics explain the economic relationship between a nation and the firms and households that are in the nation

- The nations

Created regulations that prevent the firms to do something that harmful for the households. This made people in the households able to safely buy their products without worrying much about the materials that is used by the firms.

The nations also create regulations that prevent the firms to conduct malicious/dishonest marketing practices.

- The firms.

Created product that can be consumed by the customers.

These products will be use by the household to fulfill both their basic needs and tertiary needs.

After obtaining a profit, the firms will pay a percentage of their profits to the nations. The nations will use it to fund government programs.

- The household

The household provides the labors that is ued by the firm. They also use the wage of their labors to purchase products that is produced by the firm. A percentage of their wages also taken as taxes for the household.

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