Importance Of Macro Economics Assignment Help | Importance Of Macro Economics Homework Help


The analysis of macro-economics has acquired great significance in recent years. The Study of macro-economics is useful in many ways :

1. Formulation and Execution of Economic Policies

The government intervention in the economic activities has been increasing day by day. The government, however, can not deal with a particular individual or with small groups. Hence, the study of the macro-economics becomes very important at the time of formulation and execution of economic policies. The economic policies for the removal of poverty, unemployment and price instability are based upon aggregative requirements.

2. Functioning of Economy

Macro-economics helps us to get an idea of how a complex economic system functions. It is very difficult to interpret the functioning of an economy in terms of micro-economics, as there are numerous decision making units in the economy. We can understand the complex economic system through the study of national aggregates like income, output, expenditure, saving and investment.

3. Helps to Understand Micro-Economics Better

The study of the macro-economics makes the understanding of micro-economics better. Almost every micro-economic law is based on macro-economic study. For instance, the law of diminishing marginal utility (a fundamental law of consumption) has been framed by observing the behaviour of many consumers in the society.

4. Study of Economic Development

The macro-economic developments have led to the study of the economic growth. This has enabled us to study and understand the problems of the underdeveloped countries. By Analyzing such problems, it has become possible for us to promote the development of these countries. The macro economic analysis helps us to study the process of the income generation and to determine the factors accelerating the economic efficiency.

5. Study of Welfare

It is not possible to measure the size of material welfare in terms of the micro-economics. The importance of macro-economics is enhanced, as the main objective of the study of economics is the welfare of society.

6. Theory of Inflation and Deflation

In these days, the problem of inflation has assumed serious dimensions in both the developed and the underdeveloped countries. It is the result of excessive aggregate demand, as explained by Keynes. The theory of inflation is an important subject of macroeconomics. In contrast, deflation is associated with a steady and sustained fall in the price level. Inflation as well as deflation are explained in terms of aggregative economic variables like aggregate  demand, output and money supply, which explain the general price level. The steps for remedying these maladies are also based on the aggregative approach.

7. International Comparisons

Macro economics facilities international comparisons by providing information about  aggregate demand, national income, consumption and saving for different countries.

For more help in Importance Of Macro Economics please click the button below to submit your homework assignment