List out the importance of Macroeconomics

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List out the importance of Macroeconomics

Macro Economics is the branch of economics that deals with the economy as a whole. Or Macro Economics is the study of the behavior of a national or regional economy as a whole. For example, inflation, employment, GDP, etc are the component of Macroeconomics.

List out the importance of Macroeconomics

Following are the importance of Macroeconomics:

  1. Helpful to understand the functioning of the economy.
  2. Helpful in controlling economic fluctuation.
  3. Evaluate the performance of the economy.
  4. Helpful in international comparisons.
  5. Helpful in formulating economic policies
  6. To develop and expand microeconomics.
  7. Helpful to understand international trade.
  8. Useful in business decision-making.

Briefly:

We are discussing list out the importance of Macroeconomics.

Helpful in formulating economic policies

Government makes economic policies on the basis of statistics on poverty, unemployment, and inflation. The study of Macroeconomics helps to collect reliable statistics.

Helpful in controlling economic fluctuation.

Fluctuations like inflation, deflation, trade cycle, etc need to be controlled properly. So, to handle the fluctuation knowledge of micro-economics is essential.

To develop and expand microeconomics.

The knowledge of macroeconomics is essential for the development and expansion of microeconomics.

Helpful to understand international trade.

International trade is the trade between the countries that helps in the exchange of foreign currency. So, the study of microfinance helps to understand the international trade structure of a country.

Useful in business decision-making.

Macroeconomics helps in business decision-making.

Hence, these are the use or importance of macroeconomics.

Other Important Links:

Macroeconomics Notes: CLICK HERE

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