The Importance Of Macroeconomics

Every single day we experience the impact of spending money. Whether it be purchasing the weekly groceries or placing the first down payment for your home. How we spend money, where we spend, and the frequency of spending. Of course, part of the whole scheme of spending money and saving money a lot of it has to understood at a personal level. Learning how to maintain a budget and pay your taxes on time are all part of being a good and aware citizen, but at time even the best money management skills are not good to help someone deal with an oncoming recession or even worse a depression. Realizing your place as an individual contributing to a larger nation’s gross domestic product gives you the perspective of why you lost your job due to the …show more content…
By learning macroeconomics, one can understand that there is limited supply but unlimited want. A company only has limited raw material, so in order to compensate for the amount of want from the public this specific company may have an initial public offer (IOP), increase its warehouse and manufacturing sites, or even allow the company to be absorbed into a larger franchise. However, looking at one company’s actions constitutes as microeconomics. To under the relationship to macroeconomics we have look at things such as the Standard & Poor 500 or the Dow Jones Industrial Average. The stock market’s fluctuating can impact the economy in terms of putting money back into the people’s salaries allowing them to either spend less or more. Macroeconomics lets us understand how the concept of scarcity can impact how much an individual can invest in his or her wants as well as his or her needs which is what boosts the revenue of lots of companies. In the end, we do not learn macroeconomics for all of us to become future economists, but to be aware consumers so we can protect our financial investments and under the market trends the nation is