Meaning of Macro Economic – It’s Importance

Meaning of Macro Economic – It’s Importance

In macro economics, we study the economics as a whole. We raise big issues which have collectively important for our economics. In it, we study the aggregates or average function witch have a close relationship with economics. For example like total employment, national income, total production, total saving and total demand or supply etc.

In macro economics, we study these topics as a whole and their ups & down, also inter-relationship with each other. In other words, we call the macro economics – theory of income and employment or income analysis. Macro economics have close relation with unemployment, inflation & deflation, international trade and development.

Macro Economics

                                                                                                

Importance of Macro Economics –

Analysis the economics activity – to understand any economic activity, we must firstly understand their macro variables like – total income, employments, productions because mostly our problems have a close relation with these factors.

Policy formation – macro economics play a very important role when we form any policy. These Policies are important for any economics like unemployment, total income, development, monetary issue or trade etc.

Analysis the individual issue – when we discuss the big issue, firstly we understand the micro-issue. For example if there is a decrease in demand & supply at micro level, we try to understand the factor or issue then after we make a solution of demand & supply at macro level