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Why is Macroeconomics Important
Macroeconomics can be defined as the profound study of aggregates with respect to the entire economy. Unlike microeconomics it includes a deep study of some crucial factors including the national income, investments and total savings, employment, total demand and supply, price levels and many more. This subject of economics basically focuses on the occurrence, effects and steps to control the fluctuations of these factors which affect the economy directly. It is a very crucial subject and is taught in management as well as engineering courses. Some of the points that explain the vitality of macroeconomics are described below.
It contributes in understanding the overall functioning of the complex modern economic system and how does it affect the people directly or indirectly.
It helps in setting the various goals of economic growth and also enlists ways and means to achieve them with a higher level of GDP and employment in the country. Along with these it also discusses the factors which define and affects the national income and economy as a whole.
It aims high to study the analyses fluctuations in the business activities and to bring about stability in the price levels. Also suggest various means and measures to control inflation and recession which can be very disastrous to the world economy.
A detailed description in determining the balance payment is also one of the factors Macroeconomics focuses on. It also pin points the causes of deficit in balance payment and suggest some solutions to control it for the welfare of the world.
The most important point to be noted is that the macroeconomics is a powerful weapon which can be used to curb various economic problems including poverty, unemployment, inflation, deflation and many others. This can be of great use and holds a lot of importance in contributing in the development at the national level.
With a detailed knowledge about the aims and functions of macroeconomics it will be possible to understand the economy in a better way and will even help in the formulation of the correct policies that can contribute in the growth of a nation.