Importance of Macroeconomics

-

Macroeconomics is the study about the averages and aggregates of an entire economy and it is also a part of the economic theory which studies the economy in its whole. Unlike microeconomics which includes the study of individual economic units likes a household or an industry, macroeconomics concentrates on the total economic system which involves the national income, investment and total savings, employment, demand and supply, price levels, etc.



The below listed reasons outline the importance of macroeconomics.

·        Helps understand the functioning of the modern economic system which is complicated, while also describing how the economy functions as whole.
·        Aims to achieve the goal of economic strength with higher levels of GDP and employment. It also analyses the factors that determine the economic growth in a country.
·        Helps bring stability in price levels, evaluates the fluctuations in business activities and recommends policy measures to manage inflation and deflation.
·        Assists in solving economic issues like poverty, unemployment, inflation and deflation, etc.
·        It helps design suitable economic policies and coordinate international economic policies.
·        Explains factors that determine the payment balances and identifies the causes of deficit in balances of payments, while also recommending remedial measures.

For more details please visit: https://rcbs.rajagiri.edu/


Comments

Post a Comment

Popular posts from this blog

UNDERSTANDING THE DIFFERENCE PGDM VS MBA IN KERALA

-
Image
With the increasing number of job opportunities and rise of corporate culture as well as encouragement to startups, entrepreneurship in India, more and more individuals are opting for management studies. And coming to India, there is no shortage of institutes and universities offering postgraduate management programs. In fact, Kerala have close to 100+ management institutes offering a wide range of post graduation courses like PGDM, IMBA, MHRM etc. all under the same academic bracket – MBA in Kerala . However, the students often find themselves are opting two such courses, namely PGDM and MBA . But among these candidates, most of them are unsure about the difference in titles as well as content, leads to confusion regarding which course is better for career and why.  So let’s take look on this guide to get an idea, difference between the PGDM and MBA courses in Kerala India   Decoding the Terminology Even named as two, both these courses essentially train you m...
Read more

THE MOST IMPORTANT LESSONS FOR AN MBA GRADUATE

-
Image
Every MBA graduate realizes how much they have been able to change in the two years of course time. The most important thing that one can acquire are the abilities to adapt, interpret and learn. Furthermore one valued the skill of learning the simple recipe for learning. Here are the top most important lesson one can get: 1.    Increased level of confidence in decision making at critical points with even less information. 2.    To take the risk as a challenge 3.    Being able to execute the plans in a better manner 4.    Learning from mistakes and growing from every lesson learnt 5.    To be effective as a leader and a supporter 6.    Never to underestimate the power of networking at official or personal level 7.    Making use of every single opportunity and never taking things for granted Rajagiri Center for Business Studies Kerala  is o...
Read more

Credit Crunch

-
Image
An economic condition where investment capital is hard to secure is referred to as a credit crunch. Investors and banks become wary of lending funds to corporations and individuals which drives up the price of debt products for borrowers. It is often an extension of a recession and a credit crunch makes it almost impossible for companies to borrow as lenders are scared about instances like bankruptcies or defaults which could lead to high rates. It is also known as a credit squeeze or credit crisis and occurs independently of a sudden change in the rates of interest. Individuals and businesses that could earlier obtain loans to expand operations or to finance major purchases suddenly end up unable to acquire such funds. This effect can be felt throughout the entire economy because of a drop in homeownership rates and businesses being forced to cut back because of capital shortage. The credit crunch is often followed by a period where lenders are too lenient in offering c...
Read more