Understanding Macro Economics and Its Terms

Abdul Rahman By Abdul Rahman, 30th Dec 2011 | Follow this author | RSS Feed
Posted in Wikinut>Business>Accounting & Finance

Economics is the study of Economy and Economical Activities . Macro Economics is branch of Economics which looks the whole economy of the country . Read this page to know more about Macro Economics and increase your Knowledge .

Understanding Macro Economics and Its Terms

Introduction: Macro Economics means a System may be looked at as whole or in terms of its innumerable decisions making units such as consuming units or individual Consumers and household producing Units ,Firm, farms , business and mining Concerns . The macro economics is on the whole is combination of all components of Economies in wider sense. It covers all the needs of the any country. If the macroeconomics indicator s are favorable to any country, it will become a donor to the developing Country. But the devaluation of the Currency may affect all the Countries who depend on its exchange rates.

Functions and objectives of the Macro Economics:The functions of the macroeconomics include over all economic study and all the items which come under the domain of the Economy .Be it social, commercial economical segment or component of the economy. It is the integral part of the Economical Development of any country. As The development is observed in terms of micro and Macro economical status of any country .

The main objectives of the macro Economics include :

Fiscal Policy: it denotes the uses of taxes and Government Expenditure . The Government Expenditure come into tact in distinct forms .First the Government Purchases these comprise Goods and services . The other part is the taxation Policy affects· Monetary Policy : The second major instrument of the macro economics is the monetary policy which the government conducts through managing national money .

Imports and Exports :The macro economics indicator depend a lot on imports and Exports of the country. If the country like US finding rich markets in any part of the World then it will access the buyers market and export its goods . The demand depends on the quality of the Product in the international markets. The More standard the product, the more buyers will be involved and similarly it will increase the demand of the product in international markets. The country which needs the products will import the goods of its demand from then exporting Countries. Thus, these are also the integral parts of the macroeconomics.

Foreign Exchange Rates:The foreign exchange rates are determined through the Oil and gold reserves and based on the import of the certain products. There are stocks exchanges Present in every country for Forex trading. Many people are benefiting for m the currency trading. Specially the DOLLAR. EURO and Pounds Sterling.

Devaluation of Dollar and Impact on other Countries:As it was already mentioned that most of Countries depend on the Currency of Dollar for its Exchange policy. So if the government of United States increases the value of Dollar so it will affect the countries dependent on Dollar and there debt will multiply. Where as if the US Government lowers the Currency then it will affect all the Forex trading and currency-trading people besides the countries whose economy depends upon the Dollar s thus Us can influence the economies of the other country

Conclusion: In nutshell, it is clear that the macroeconomics is the integral part of the Economy of any country and helps them to sustain their economy and bring some economical reforms and make Fiscal and Monetary policy to escape deficit budgeting and other Components related with the Economy. It also helps the Country to draft policies of trade development and Export promotion.


Economic Crisis, Economic Development, Economic Trends, Economics, Finance, Fiscal Policy, Macro Economics

Meet the author

author avatar Abdul Rahman
Mr Malik has been in writing Business for the last 15 years. He Blogs at: www.remoteworktips.info , www.affairspk.tk

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