1)What are the objectives of macroeconomics?

2)What is a macroeconomic dislocation? How can I identify one, and how can I learn about them?

3)Savings increase in the rest of the world. Explain how this affects the world interest rate, American savings, investment, net exports and real exchange rate?

1)The objectives of macroeconomics are the following:

• Stable Low Inflation: Inflation stability is the primary objective of macroeconomic policies.
• Sustainablle Growth: The growth of real gross domestic product is another objective of the macroeconomic policy which means reducing the environmental impact of growth.
• High Employment: The government wants to achieve an increase in employment and eventually a situation where all those able and available to work can find meaningful work.
• Rising living standards: The cutting of child poverty and reducing pensioner poverty is another goal of macroeconomics.
• Sounnd Government Finances: Including control over State borrowing and the total national debt.

2)When there are changes in inflations rates, gross domestic product, interest rates and so on, then the economy does not remain stable and dislocated from stability. This is known as macroeconomic dislocation. For example, when there are changes in economic conditions, then some workers are displaced or dislocated. These workers do not return even when the economy recovers.

A macroeconomic dislocation can be easily seen when there is an increase in unemployment rates, changes in interests rates, increase or decrease in inflation and so on.

3)Savings in Rest of world rises, consumption declines, world interest rate decreases, world GDP declines, exports of US decreases, trade deficit, exchange rate depreciates, US GDP decreases, US savings decreases, US investment decreases, US interest rate decreases, exchange rate decreases, world inflation decreases, US inflation too decreases, real exchange rate rises or declines depending on relative increase of US inflation.