1)What are the important problems that constitute the subject matter of macroeconomics?

2)Why do we seldom see application of the Copula-Garch model in macroeconomics?

3)What are the objectives of macroeconomics and their variables?

4)Why do we not study PPC under macroeconomics?

1)The subject of macroeconomics constitutes various branches that deal with the various problems:

? Economic Growth: The economic growth refers to the growth in the well-being of nation. The GDP of a nation is considered as the indicator of well-being. Macroeconomics deals with the factors or causes that widen the gap between the desired and the actual GDP. It also deals with the impacts that various growth rates can have on the economic structure or on the lives of individuals.

? Unemployment: Unemployment is the phenomenon which shows the number of individuals in the labor force who are willing and be able to work but have no job. It deals with the various theories which explain the variation in unemployment rate and its association with the other keys variables. It also studies the policies that can be used to reduce unemployment.

? Business cycles: It refers to the fluctuations experienced in output by the economy. The fluctuations can be of four types, namely, Recession, Boom, Recovery and Slump.

It also deals with the impacts of such downward or upward trends on the economic structure.

? Interest Rates: The rate of interest is the other key variable which is studied under macroeconomics. The rate of interest is associated with investment and consumption spending which are key ingredients of the aggregate demand and economic growth.

? Budget deficits: Budget deficit shows the excess of government expenditure on its revenue. The government spending helps in creating more jobs in the economy. The deficit incurred by the government is financed by either debt or money printing which imposes additional cost on the individuals in the form of tax and inflation increase, rate of interest changes. This will affect the saving and investment behavior of the individuals.

2)GARCH-Copula model is rarely used in macroeconomics because it has many limitations such as it does not distinguish between good and bad risk. It does not determine the potential loss after a certain limit. There are only four copulas that are generally used to model the return of the asset. This model test for long memory in the stock exchange for a long period of time but there may be a change in the fractional structure of the time series.

3)

Macroeconomics is aimed at:

1. Driving the economy toward full employment. The economy is at full employment when the resources are utilized fully. Macroeconomics aims at achieving full employment where there will be resources that will be underutilized.
2. Macroeconomics is aimed at bringing economic growth. Macroeconomics also ensure that there is economic growth through the formulation of policies that are aimed at bringing growth to the economy. Economic growth can be measured by the use of the gross domestic product where if the GDP increases with time the economy is said to have grown.
3. Price stability. Macroeconomics tries to maintain the prevailing price levels. In other words, macroeconomics tries to avoid inflation in the economy. Though there may be inflation it is maintained at manageable levels.
4. Bringing the balance of payment. When there is a balance of payment in a country, it means that the exports and imports are equal. When a country engages in trade with other countries there may be a balance of payment deficit where a country is importing more than it is exporting or the country may exporting more goods than it actually imports this situation is called balance of payment surplus.

 4)Production Possibilities Curve (PPC) shows the number of units to be sacrificed of one good in order to gain one additional unit of another good. It analyses the different possible consumption bundles of an individual which is a concept of microeconomics because macroeconomics study the economy as a whole and not behavior of any one individual. However, PPC can also be drawn for a country to see and compare the comparative advantage in production of a country. The outcomes of the economy are often influenced by the individual behavior and preferences. So, that is why, PPC is covered under microeconomics.