1)What are the mathematics used in macroeconomics research?

2)Is macroeconomic data from India reliable, even though there are so many unaccounted (black money) transactions?

3)What limitations do macroeconomics have?

4)How can conflicts between macroeconomic objectives be resolved? Explain using an example.

1)The mathematics that is used in macroeconomics research is hypothesis testing, correlation analysis, regression analysis, covariance, probability, ANOVA test, autocorrelation analysis, heteroscedasticity test, confidence interval, Variable estimation, dispersion and various other statistical methods.

2)The macroeconomic data of India is not fully reliable as it is not possible to collect precise estimates of macroeconomic data. There can be lags in the process of evaluating a particular data. As all the data is based on samples, therefore it is difficult to determine the exact values.

3)Limitations of macroeconomics

1) Ignorance of individual: The macroeconomics is concerned with the economy and it does not concern with the individual like individual producers. And, the study of macroeconomics is useless because it ignores individual welfare.

2) Statistical difficulties:- The macroeconomics is the study of economic phenomena with the statistical method and it is more difficult to investigate these economic phenomena because the difficulty relates to the microeconomic variables.

3) Misleading:- The misleading in various economic problems in the macroeconomics theory such that it is not used the same principles in the full employment case.

4) Fallacy:- The macroeconomics is the summation of individual activities but in the case of an individual does not necessarily in the concept of economy as a whole.

4)One of the most significant macroeconomic objective conflicts involves economic growth and inflation. Rapid economic growth yields a shortage of skilled labour, hence leading to wage inflation and increased prices. Moreover, high demand growth rates in a rapidly growing economy can lead to high product prices at the market.

An example

For instance, the Lawson boom of the late 1980s in the UK yielded substantial inflationary pressures, hence precipitating a recession, mainly emanating from high-interest rates induced to curb lending and spending.

Nevertheless, economic growth is not necessarily accompanied by inflation. From 1993-2007, the UK experienced one of the most prolonged periods of economic growth with significantly low inflationary rates in the country's history. The UK government ensured that changes in the economy were aligned with the overarching trend rate of economic growth to avoid a conflict between macroeconomic objectives. In particular, the puzzle was addressed using realistic interest rates to maintain the appropriate balance between supply and demand. Notably, all categories of macroeconomic objectives conflicts involve inflation. Thus, crafting and implementing relevant policies, especially for regulating the balance between aggregate supply and demand, is one of the primary techniques available for addressing all categories of macroeconomic objective conflicts.