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Introduction to Macroeconomics

Macroeconomics is a branch of economics and is very important for evaluating the overall performance of the economy in terms of national income. The main functions of macroeconomics are the collection, organizing, and analysis of data. The main aim of this field is to understand the reason for the fluctuations and to ensure the maximum level of employment and income in a country.

The Importance of Macroeconomics

There is a pool of reasons why we need to study macroeconomics.

It focuses on how the economy as a whole, functions and how the level of national income and employment is determined based on demand and supply.
The subject also deals with economic growth of the country and explains how to reach the highest state and sustain it.
Macroeconomics helps to bring stability in price level and analyses fluctuations in business activities. It also explains factors that determine the balance of payments, deficit, and remedial measures.
This field discusses the economic problems like poverty, unemployment, inflation, deflation, etc. By its detailed studies, we can formulate correct economic policies and also coordinate international economic policies.
Lastly, macroeconomics theory has saved us from the dangers of the application of this theory to the problems that we need to look at the economy as a whole.

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