Macro Economics.pptx

1. MACRO ECONOMIC PRESENTATION

2. Role of macro
Economic
Analysis in Formulation of Business Operates
Short definition:-Macro Economics analysis is more
important and useful in the formulation of business policies.
But some of the macro economics Problems are study as they
also affect the business and the environment in which
business operates.

3. The role of macro economic analysis in formulation of business policies is studied
as given below.
1. Macro Economic Policy – Macro Economics helps in formulation of economics Policy. The
objects of an economics policy are Monetary policy, fiscal policy, Incomes policies and policy on
balance of payment and exchange rate policy Licensing policy and overall economics policy
formulated and implemented
2. Useful in Economic Planning- Economics planning is based on the determination of objectives
allocation of resources determination. The data regarding such items are collected and it provides
the books for the study of macro economic analysis.
3. Formulation of macro Economics Policy- Economics policies of the governments are not
concerned with individual but they are concerned with groups and groups are studied by macro
economic analysis.

4. 4. Analysis of trade cycles - Macro economics tries to know about the behavior and occurrence of
booms and slumps and their implication on business activity. Macro economics helps the business
in facing booms and slumps so that negative impact is minimized.
5. Inability of micro economics to study some areas - Macro economics is helpful in studying
monetary problems, fiscal problems, financial sector problems, foreign exchange regulation
problems and inflationary and recessionary situations problems.
6. Help in solving problem of general unemployment - Effective demand is the focal point of macro
economics. Reduction in effective demand brings economic depression and thereby unemployment.
Hence, the of effective demand should be increased in order to increase the level of employment.