The Importance Of Studying Macroeconomics Essay

1337 Words Nov 22nd, 2015 null Page
The Importance of Studying Macroeconomics The study of Macroeconomics takes into account many of the factors that determine not just the current financial state of a nation or region, but its prospective future. According to Thomson Gale, It examines the cyclical movements and trends in economy-wide phenomena, such as unemployment, inflation, economic growth, money supply, budget deficits, and exchange rates. As the world trends toward a global economy in which corporations establish international presences and countries finance each other based on the promise of shared profit, it is essential to have a clear view of a country 's economic situation. It considers households both as suppliers of factors of production (labor, land, capital, entrepreneurship) and as ultimate consumers of final goods and services (Gale, 2008). With a detailed knowledge of the functioning of an economy, it has helped Macroeconomist to correct economic policies. Why is studying Macroeconomics important? Here are a few reasons, It describes how the economy as a whole functions and the level of national income and employment is determined on the basis of supply and demand. It helps to achieve the goal of economic growth, a higher GDP level, and higher level of employment. As well as analyze the forces which determines the economic growth of a country. Which explains how to reach the highest state of economic growth and sustain it. In the following paragraphs I will discuss various points about…

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