IMPORTANCE OF MACROECONOMICS

The study of macroeconomic variables is indispensable for understanding the

working of the economy. Our main economic problems are related to the behaviour
of total income, output, employment and the general price level in the economy.
The variables are statistically measurable thereby facilitating the possibilities of
analyzing the effects on the functioning of the economy. It gives a bird eye view of
the economic world.
For the formulation of useful economic policies for the nation, macro-analysis is of
the utmost significance; economic polices can not be obviously based on the basis
of the fortunes of a single firm or even a single industry or the price of individual
commodity. It is for more fruitful to regulate aggregate employment and national
income and to work out a national wage policy.
The Keynesian theory of employment is on exercise in macroeconomics.
Increasing total investment, total output, total income and total consumption should
raise unemployment caused by deficiency of effective demand. Thus,
macroeconomics has special significance in studying in causes, effects and
remedies of general unemployment.
The study of macroeconomics is very important for the evaluation of overall
performance of the economy in terms of national income. National income data
helps in forecasting the levels of economics activity and to understand the
distribution of income among different groups of people in the economy.
The economics of growth is also a study in macroeconomics. It is on the basis of
macroeconomics that the resources and capabilities of a framed and implemented
so as to raise the level of economic development of the economy as a whole.
It is in terms of macroeconomics that monetary problems can be analyzed and
understood property. Frequent changes in the value of money, inflation or
deflation, affect the economy adversely. Adopting monetary, fiscal and direct
control measures for the economy as a whole can counteract them.
We may conclude that macroeconomics enriches out knowledge of the functioning
of an economy by studying the behaviour of national income, output investment,
saving and consumption. Moreover, it throws much light in solving the problems of
unemployment, inflation, economic instability and economic growth.

IMPORTANCE OF MACROECONOMICS
Macroeconomics is the part of economic science is the study of aggregate
variables of the economy, the aggregate variables is the sum of the individual, ie,
consumption of families the added variable is domestic consumption, the expense
of people with variable aggregate domestic spending, saving people with variable
aggregate national savings, growth of people with variable aggregate national
economic growth, the production of a person with a variable aggregate domestic
production, thus Macroeconomics is responsible for studying the behavior of
economic variables of a country in order to see how it unfolds the country
economically. Among the most important variables are GDP gross domestic
product, inflation, devaluation, unemployment, public expenditure (spending),
EXPORTS, IMPORTS.