1)How can the five major macroeconomic objectives be used to measure economic performance?

2)What is the future macroeconomic environment and its expected impact on management and the role of technology?

3)Which demand-side policy, monetary policy or fiscal policy, should be implemented in order for a country to improve the strength of its currency?

 

1)These are the following key measurements of economic performance, which can be also termed as the macroeconomic indicators of an economy:

1. Rate of economic growth.

2. Rate of inflation.

3. Unemployment level.

4. Current account.

5. Level of the national debt.

6. Labor Productivity.

These measurements are also used to check the different wellbeing indices of a society or economy like - life expectancy, happiness levels and the environmental factors of the economy. We can start with the level of economic growth- which explains the level of real GDP (the combination of real wages, labor productivity and the level of investment), level of inflation- which explains the price stability and its pattern, level of unemployment- which is used to evaluate the level of inequality in the economy and finally, the current account to analyse the aggregate level of international transactions.

2)The macroeconomic environment is concerned about the surroundings in the economy as a whole. It comprises of trends like inflation, unemployment, gross domestic products, interest rates, and so many macro elements of the economy. The main goals of the future macroeconomic environment are economic growth, stability, and full employment.

Macroeconomics elements that affect management are Economic factors, demographic factors, natural and physical factors, and so on.

• The economic factors such as interest rates, exchange rates, recession, and inflation will affect the company?s production and the decision of the customer to purchase the goods and services.
• Another macro factor that affects management is demographic forces. These include education level, population, and lifestyle, and so on. For example, the company will produce such goods which are acceptable for the different age groups. This is how these factors would make an impact on management.
• The natural and physical factors that would make an impact on management are climate change, pollution, and weather, availability of both non-renewable and renewable resources.

On the other hand, technology has made a vital impact on the macro-level of business and organization. With new and more advanced technology in the macroeconomy, technology can have a significant impact on how efficiently any business is running. In the future, technological advances will offer more potential and efficiency to the company. For instance, improvement in computational capacity will improve environment predictability micro and macro level both.

3)In the IS LM BP model, under fixed exchange rate, fiscal policy is more effective in raising income. this means trade surplus as IS shifts rightwards and point above the BP curve-- forex reserves rise, money supply rises, interest rate declines, incomes rise and hence exchange rate appreciates. Under flexible exchange rate, monetary policy is effective in raising income-- trade surplus, exchange rate appreciates.