Macroeconomic Issues |What are the 3 major concerns of macroeconomics?| Macroeconomics | Macroeconomic issues today | Introductory Macroeconomics
Macroeconomics is the branch of economics that deals with the study of aggregate economic variables like aggregate demand, aggregate supply, price level, etc. Basic Issues in macroeconomics are the economic problems that have often been confronted by different countries at different points of time.
It helps to provide a sound theoretical framework for investigating the causes and effects of the economic problem and provides effective guidelines for finding an appropriate policy that measures to solve the economic problem.
Unemployment is the condition in which resources are willing and able to produce goods and services but are not engaged in productive activities. Analysis of unemployment especially labor employment goes hand in hand with the study of macroeconomics that emerged from the Great Depression 1930s.
Types of Unemployment
This type of unemployment occurs high during recessions and depressions, and low during a period of economic growth.
This type of unemployment occurs when workers take some time to move from one job to another job.
This type of unemployment occurs because the demand for some workers varies widely over the course of the year.
This type of unemployment occurs because some labor markets have more workers than the job available. Wages do not decrease to bring the market into equilibrium.
Inflation is a persistent increase in the average price level in the economy. It is measured by the inflation rate, Business annual % rate in the price index. As inflation rises every dollar you own buys a smaller percentage of a good or service.
Business Cycle is the fluctuation in economic activity that an economy experiences over a period. The business cycle is mainly defined in terms of expansion and recession. During the expansion period, the economy is growing and during the recession, the economy is decreasing.
4) Economic Growth:
Economic growth is attended by increasing the quality or quantity of economic resources such as land, labor, capital, and entrepreneurship. The five economic goals are Population growth, investment, exploration, technological innovation, and education. Other economic goals are employment, stability, efficiency, and equity.
Difference between MEC and MEI