Question

Case study#2: The Great Depression

The Figure below illustrates the Great Depression. At times, such as when many people are in need of government assistance, it is easy to tell how the economy is doing. This photograph shows people lined up during the Great Depression, waiting for relief checks. At other times, when some are doing well and others are not, it is more difficult to ascertain how the economy of a country is doing.

Question: Interpret the role of Macroeconomics for the well-being of the society.

Answer 1

MACROECONOMICS: It can be defined as a branch of economics that deals with the study of national economy on the whole ie it deals with the aggregate of economy.

ROLE OF MACROECONOMICS

1.STUDY OF NATIONAL INCOME: In order to calculate national income ,knowledge of macroeconomy is required. National income is also important as it helps us to know if how much population of our country is earning and what population working is below poverty.

2. STUDY OF ECONOMIC DEVELOPMENT: With the study of macroeconomics one can easily study about the economic development of a city, state or a country. We get to know about the differences in the way of living of several people and with this knowledge we can also improve the standard of living by developing that particular area.  

3. CALCULATE TOTAL DEMAND AND SUPPLY OF A COUNTRY: To calculate the demand and supply of a country,the macroeconomics is required. Demand refers to the wants of a particular person like there is a huge demand of  beef in USA and supply refers to making available a product that is in demand like sea food .

4. PERFORMANCE OF ECONOMY: To know if the country is having increase or decrease in its national economy, the macroeconomics is required.

5. STUDY INFLATION AND DEFLATION: In order to study inflation and deflation of an economy and deal with it , we must require knowledge of macroeconomics.