question archive 1)Why does macroeconomics use aggregate indicators? 2)Why does macroeconomics systematically fails to predict crises? 3)What are the macroeconomic issues or conditions that are of importance to the enterprise manager in tackling forward decision planning?
Subject:EconomicsPrice:2.88 Bought3
1)Why does macroeconomics use aggregate indicators?
2)Why does macroeconomics systematically fails to predict crises?
3)What are the macroeconomic issues or conditions that are of importance to the enterprise manager in tackling forward decision planning?
1)Macroeconomics is the study of the economy from a broader point of view hence it becomes necessary to take the total value of economic variables or the average quantities of variables like - Gross domestic product, inflation, and national income and so on into consideration. Hence, unlike microeconomics, this field requires the measurement and consideration of aggregate indicators as it covers more than just the individual and economic activities surrounding that individual. The computations of the economy mean there is a need to follow a method of aggregation that does not leave any variable or component out while deriving conclusions about the economy.
2)Macroeconomics studies how limited resources are utilized by the economy in the production of goods and services. Macroeconomics predicts crises which may happen as predicted or fail to happen as predicted. But sometimes, macroeconomics fails to predict crises because of the following reasons:
3)The macroeconomic issues or conditions that are important to an enterprise manager are, increase in the expected inflation rate, the depreciation of the currency, a possibility of an upcoming recession in the economy, changes in the labor laws, increase in the tax rate.