Macroeconomics globally studies the operation of the economy and elements integrated to it, to know and explain the economic evolution of aggregates such as; the unemployment, inflation, price level, balance of payments, level of economic growth, among others.
In this article you will find:
What is macroeconomics?
It is a branch of economic science, which studies the structure, behavior and capacity of macro (large) national or regional aggregates.
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Its main function is to analyze the work of a country to achieve its economic objectives, in order to achieve the best way to do so.
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Origin of macroeconomics
After certain situations and tendencies adverse to the economy, for which solutions were not found in the traditional economic sciences, the
Macroeconomic interests
Under the context expressed above, it is possible to identify the main issues addressed by the macroeconomy; among these stand out:
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Economic growth
Either in the medium or long term, it is important to pay attention to all the factors that affect the speed of descent of the economy of that country, since this allows to increase the standard of living of its population.
The productivity
The economic growth of a country largely depends on the growth of the productivity generated by National companies and their workforce. It is important to bear in mind that productivity in turn will be determined by the level of technological advance that that country has.
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Business cycles
It analyzes the reasons why a country's economy goes through these oscillatory currents inherent to economic dynamics and their consequences on GDP.
Unemployment
It addresses situations in which employment and the unemployment rate could vary within one period to another within time in the same country. It also studies the measures that can be applied to reduce the unemployment rate.
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Stagflation, inflation or deflation.
Determines the elements that incur in the variation (increase or reduction) of prices, concerning the goods and services produced in the country. Noting and studying the consequent loss of well-being of the population.
Importance of macroeconomics
The importance of this area of economics lies in the fact that it involves the study of the economic and monetary health of a given region, focusing on those elements that cause both positive and negative changes in the general economy of that region. region.
This can be seen in the various areas studied for the current economic evaluation, based on the statistical compilation of the economic cycle of the country.
Some of the factors studied are used as a guide in the decision making and formulation of monetary policies that will allow the population a better standard of living.
For their part, companies also study some macroeconomic trends, in order to have a guide for the establishment of their business policies, based on the real economy of the country where they are unwrap.
In this sense, it can be said that macroeconomics is a primary tool for the political and economic administration of a region, which admits knowing investment needs, assessing in current time, the successes or failures of each of the concrete actions, also finding the measures corrective.
Benefits of the macroeconomy
The benefits of this branch of the economy are related to:
- Stability
- The productivity
- Welfare
- Growth
The country and its population, in addition to the improvement in internal and external conditions that could affect the finances of the country and the prosperity of its inhabitants.
In this plane, stability is achieved with:
- The balance of the country's exports and imports.
- Producing more than what is spent, generating savings.
- With the existence of sufficient employment that covers the labor demand of the population.
- Keeping the nation's indebtedness low.
- Collecting enough taxes to meet social needs and investment.
What are the macroeconomic indicators?
A macroeconomic indicator results from the combination of some financial variables, which facilitate the measurement of economic trends.
The main indicators are:
- Inflation
- The Gross Domestic Product (GDP)
- Unemployment rate
- Consumption per capita
- Industrial and agricultural productivity
- Level of imports and exports
- Currency exchange and exchange rate
- Public debt
- Social investment
Conclusion
To conclude, it is important to be clear that as an area of the economy, micro and macroeconomics deal with similar factors and their fundamental difference is given by scope of action.
The microeconomics addresses the economic problem from the individual level (person or company), while macroeconomics adds these individual contributions to treat them globally and see them from the national level.
That is why at the macroeconomy cares about the impact of the nation's indebtedness and tax collection in order to meet social needs such as education and housing, in addition to providing the contexts so that the unemployment and inflation rates are low and the inhabitants obtain better conditions of lifetime.
