Importance of Macroeconomics
Importance of Macroeconomics
Macroeconomics is also an equally useful tool in analysis of various fields of economic activities. It is mostly used in the following sectors:
- Formulation of macroeconomic policy: Different types of macro policies are formed by the government. Macroeconomics is useful to formulate aggregate price policy. aggregate tax policy, aggregate trade policy, aggregate investment policy, fiscal policy, monetary policy etc. Such policies are required for rapid and smooth economic development of a nation.
- Solving various social problems: A society or nation may be suffering from various types of problems. Macroeconomics is also useful in studying various problems of society such as unemployment, poverty, inequality, regional imbalance, and make necessary policies and suggestions to solve those problems.
- Measurement of national income: Macroeconomics is also useful to calculate and measure the value of national income. It is also necessary to make analysis on components of national income such as GDP, GNP, per capita income of a nation, etc. We compare the nations by analysing the values of GDP, PCI, etc.
- Economic and price stability: A nation should establish smooth economic relationships and price stability for its sustainable development. Macroeconomics helps to formulate such economic and monetary policy to accelerate the rate of economic growth and to control inflation and deflation in the country.
