Answer to Question #221290 in Macroeconomics for Ana

Question

What are the 3 major concerns of macroeconomics

Answer 1

The focus of macroeconomics is on three aspects: unemployment, national output, and inflation because it is an economics branch that studies the economy in general. The concern associated with macroeconomics is the overall workings of understanding the purpose of the economy. Macroeconomics is working towards economic growth, to have low inflation that means there will be stable prices, and finally to have low unemployment. The economic growth will determine the country's prevailing living standards, measured in percentage change in the correct gross domestic product. Full employment is important because the economy will not waste valuable resource labor, increasing the production of goods and services. A constant increase of the overall price level is what is referred to as inflation. If many people experience high prices for shelter, food, and health than their wages from their labor l, then that means there will be unpleasant feelings by the people because there will be a decline in their living standards.