What is the importance of studying macroeconomics

      

What is the importance of studying macroeconomics

  

Answers


Dana
It predicts the impact of exogenous variables on the endogenous ones
It helps in the study of welfare in the society
Facilitates estimation of GNP, which aids in the analysis of the economy’s performance;
Knowledge of macroeconomics is important in economic policy formulation by governments. For example, we are able to understand how aggregate variables like GNP, wage rate, consumption, savings, investment, interest rates etc, will be affected by a change in government expenditure, tax policy, monetary policy, foreign exchange rates,
Dana05 answered the question on July 18, 2019 at 19:40


Next: What are the aims of macroeconomic policies
Previous: What are the limitations of macroeconomics

View More Economics Questions and Answers | Return to Questions Index


Exams With Marking Schemes

Related Questions