The study of macroeconomics takes into account many of the factors that determine not just the current financial state of a nation or region but its prospective future.
As the world trends toward a global economy in which corporations establish international presences and countries finance each other based on the promise of shared profit, it is essential to have a clear view of a country’s economic situation .
Macroeconomics is the study of BIG(macro) issues .
Why study important? Here are a few critical reasons :
- It describes how the economy(that is so complex) as a whole functions and how the level of national income and employment is determined on the basis of demand and supply.
- It helps to achieve the goal of economic growth, a higher GDP level, and higher level of employment. It analyses the forces which determine economic growth of a country and explains how to reach the highest state of economic growth and sustain it.
- It helps to solve economic problems like poverty, unemployment, inflation, deflation by mean of formulating proper policies .
- With a detailed knowledge of the functioning of an economy , it has helped macro-economist to formulate correct economic policies .
- Macroeconomics has evolved over the time and macroeconomic theory has saved us from the dangers of application of microeconomic theory to the problems that require us to look broader view over economy .
So in short(at national level) if you have fair idea of macroeconomics ,you should be able to understand some of things like great depression of 2008 , Fiscal policies, how tax rates are determined , Inflation , Unemployment , Minimum wage , Income inequality etc.
At an individual level macroeconomics could be of some use like :
1-Is it a good time to switch jobs?
2- Should you ask for raise ?
3- Should buy new house or wait?
4-Should get a fixed or variable rate mortgage?
At business level it could help in :
1- How much to manufacture ?
2- Inventory levels ?
3- Invest in new plants ?
4- Expand into foreign markets or downsize?