1)What are some of the contributions of classical macroeconomics?

2)What are the advantages and disadvantages of macroeconomic problems?

3)Why is macroeconomics no longer relevant?

1)Following are some contributions of classical macroeconomics:

1. Value theory: Classical economists focused on the development of theory of value. It included labor theory of value and cost of production theory of value. The main idea behind this theory was that value refers to the value of exchange which is separate from price.

2. Monetary theory: Classical economists proposed that only banks should control the supply of money. They said that inflation is caused because of excessive printing of currency by banks. They also said that aggregate demand automatically adjusts itself to the supply of money and hence, only banks should control it.

2)

Advantages of a macroeconomic problem:

• It helps in formulating policies keeping in mind the conditions of the present scenario. For example, a decision regarding the interest rate and how much will be the tax would be monitored by the government or central bank and is thus an advantage to a macroeconomic problem.
• A macroeconomic problem can help us keep on the track of the increasing level of unemployment. It can also help in removing poverty by providing obvious targets. Major economic decisions are more incentivized to be made, since the problem faced by the economy is a macro-level problem. A major economic problem like a high trade deficit would be kept in consideration while making further trade, for example.
• Macroeconomic problems will enable a check on the regular aggregate supply and demand of the economy, and if there is efficient production to have balance supply.

Disadvantages of a macroeconomic problem:

• It can lead to a slow economy (i.e. slow economic growth) if the macroeconomic problems continue to prevail. This is because if there's consistent inflation, it would reduce consumers' capacity to make purchases and therefore, there would be lower demand for essentially all products and services. This leads to a slow economy.
• It can lead lower standards of living as macroeconomic problem leads to high poverty, unemployment, and thus, it would be a greater impact on the living of individuals. Macroeconomic problems will thus lead to a stagnant economy since there's an inefficient distribution of the goods and services to the society as a whole.

3)Microeconomics is not relevant in today's world because an individual has to look to micro variables before moving to the macro level. If the micro foundation is not strong the economy cannot work in the long run and there will be no use of studying macroeconomics.

Reasons why macroeconomics no longer relevant are:

1 Composition: Macroeconomics is based on individual activities. But what is true of individuals is not necessarily true to the fiscal entirely.

2 Regards aggregates: Macroeconomics regards all the activities as homogeneous but it real these economic activates are heterogeneous in nature.

3 False representation: What is true to macroeconomics may not be true to the individuals at micro level for example, some firms may face losses in the boom period and conversely, they may be accumulating profits in a precise of depression.