Question
Explain the importance of Macro economics.
✓
Answer
Importance of Macro Economics :
- Functioning of an Economy : It gives an idea of functioning of an economic system and help us to understand the behavioural pattern of aggregate variables.
- Economic fluctuations : It helps to analyse the causes of fluctuation in income, output and employment.
- National Income : It helps to study about National Income and makes possible to formulate correct economic policies.
- Economic Development : It helps us to understand the problems of the developing countries such as poverty, difference in the standards of living, etc., and suggest important steps to achieve economic development.
- Performance of an Economy : It helps us to analyse the performance of an economy where National Income estimates are used to measure the same.
- Study of Macro-economic Variables :
Study of macro economic variables are important to understand the working of the economy. - Level of Employment : Macro economics helps to analyse the general level of employment and output in an economy.
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