1)Of the four macroeconomic government objectives (low unemployment, low and steady demand-pull inflation, economic growth, and balance of payments in equilibrium), which do you think is the single most important?

2)How is macroeconomics used in stock speculation?

3)Is private debt a macroeconomic concept?

1)Economic growth is the most important macro-economic objective of the government. Important to note, it refers to an increase in economic output over time. Basically, it incorporates other economic objectives meaning that economic growth accrues numerous advantages to the economy of a country such as lowering the levels of unemployment. The reason for the argument is the idea that economic growth entails increased productivity, which requires more labor input from workers.

Consequently, the working population earn wages hence enabling them to improve their living standards. The purchasing power of the workers helps them to maintain steady demand-pull inflation, which promotes production from different sectors of the economy. Besides, economic growth plays a significant role in promoting a positive balance of payment. Ideally, improved productivity improves the ability of a country to exports as opposed to importation leading to trade surplus. The government also benefits from economic growth because of increased tax revenue, further enabling it to finance its projects.

2)Stock prices and the macroeconomic variables are related to each other. Investment decisions about stock markets are based on macroeconomic variables. Stock market performance is used to judge the economic conditions of a country. Investment in the stock market is done to generate profits and earn income. It is important to speculate before investing in order to gain knowledge about the stock market. Investment in a particular stock is beneficial or not should be known by the investor.

The macroeconomic factors which bring about changes in the exchange rates can lead to changes in the stock returns. For example, when there is depreciation of the domestic currency then it will have a negative impact on the stock market. On the other hand, the overshooting of the exchange rate will have a positive impact on the stock market.

3)Private debt is not considered as a macroeconomic concept because the personal debt is an amount that is bought by an individual or private business which can be in the form of personal loans, business loan, credit card and many more.

Suppose an individual who wants to purchase a house goes to bank for a personal loan, that will not be taken as macroeconomic concept because the individual borrows the loan for their own self interest.

When the national debt or public debt is considered that is, if the government borrows from the bank will be considered as a macroeconomic economic concept because this loan is related with the development of the economy as a whole.