The Definition of Macroeconomics – Assignment Example
The paper "The Definition of Macroeconomics" is an excellent example of an assignment on macroµeconomics.
Macroeconomics provides an overall perspective to a country’s economy. It takes into account several economic variables such as inflation, unemployment, growth, and finances while evaluating the performance of a country’s economy and deciding on the best course of action that needs to be taken to have a stable economy. The great depression in the 1930’s has given a major boost for the study of the economics of a country and to frame policies which when faced with a crisis will provide sufficient inputs to successfully overcome the crisis. Thus knowledge about the economy of the country in which we live is vital if we want a better and flourishing society. The major economic issues such as national income, output, and employment can be statistically measured and their effects on the country’s economy determined. The well-thought policies of economists such as Keynes have provided the basis for the study of macroeconomics. These theories have helped explain that raising the total income, investment, output, and consumption can help improve the employment status. Macroeconomics also helps to understand the distribution of the national income among the different classes of people within the country. The monetary changes are best explained by this study which would help to better the growth of a country. Thus the study of macroeconomics has become an indispensable aspect of the modern day economy.
Name the three sectors of our Macroeconomics? Define each one and explain the key component? Give as many examples
The goods and services sector indicates the income and pricing of goods in the economy. The labor sector deals with wages and employment and unemployment rate within the country. The monetary sector is concerned with money supply and determination of interest rates. The three sectors deal with the major macroeconomic variables which the subject analysis. The key component that binds all these is money flow and labor as they are equally involved in all the three sectors and together they help to determine the economic position of a nation.