Macroeconomic Policies and the Study of National Output and Income

Macroeconomic study of deal not with Individual but aggregate of these quantities not with Individual Incomes but nation incomes not with Individual output but with the nation output Macroeconomic as two policies which are; Financial or monetary macroeconomic policies: The government can make the balance of how money can be supply.

The money can be supply In three term which are: OMO- Open Market Operation Reserve requirement Interest Rate OMO can supply money Into the bank through central bank example the BOT can sell the shared to the bank at the lower price who can be faced the Inflation and then hat central bank can buy to the higher price theory.

In microeconomics the behavior can depend on how they make decision on choice of the good but in the microeconomics it not consider the 1 OF3 Inalvlaual Denavlor It cons10er aoout tne tne wnole nation Microeconomics is the study of decision that people and business make regarding the allocation of resource and price of good and services . This can means also taking into account taxes and regulation created by government. Macroeconomic focused on the supply and demand and other forces that determine the price level seen in he economy. For example microeconomics would look at how a specific company could maximize its production and capacity so it could lower price and better compete in its industry Macroeconomic on the other hand is it the field of economic that studies the behavior of the economy as a whole and not Just on the specific companies but the entire industries and economic .

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This look at economy-wide phenomena such as Gross Nation Product (GDP) and how its affected by changes in unemployment, nation income, rate growth, and price level . For example , macroeconomic would look t how an increase/decrease in net export would affect the nation capital account or how GDP would be affected by unemployment. What are the determinants of economic growth and living standard in a country in macroeconomic are used in determine to know why this country is more develop than other country are used macroeconomic. For example why Kenya are more develop than Tanzanian country is this how can be used or.

Since a century ago developed nation have achieved a high rate of economic growth which in turn raised people standard of living macroeconomic examines the reasons behind the speedy conomic growth in the developed nations and understand the reason why this growth is different between the various countries Productivity The average labor productivity or the output of a single worker is important to determine the standard of living macroeconomic will question the factor which decide on the employee productivity growth rate macroeconomic is seen the one worker or single worker in order to determine the average of the worker in the economic that can assure the economic product of the nation or the whole can grow or not in yht area

What are the cause of the decline and growth in an economic ny economy will surely go through decline and growth in relation to this macroeconomic will look at the cause of these changes in the economic and the government policies that can be implement to overcome an economic problem wnat are Tactor wnlcn affectlng unemployment Rate of unemployment means there is an available work force that wants to work but has no Jobs the rate of unemployment will increase when the economic situation is good macroeconomic will examine the reasons for unemployment types of unemployment and ways to overcome unemployment What are factor that cause the general price level or inflation to rise Inflation is an increase in the general price level which is usually measured by changes in the consumer price index the question asked in a macroeconomic analysis are 1 . what are factor affecting inflation. 2. Why does inflation rate differ from time to time 3. why does inflation rate fro one country to another

The macroeconomic does not look for the one person or individual s a policy but can be used to all people For instances if a national saving is increased at the cost of individual welfare it is not considered a wise policy The macroeconomic analysis regard aggregate as homogenous but does not into its internal composition For instance if the wages of the clerks fall and the wages of the teachers rise the average wage may remain the same It is not necessary that aggregate variable are important. For instance nation income is the total of the individual income if the nation income in the country goes up it is no necessary that the income of all individual in the country will also rise there is possibility that that the rise in nation income may be due to the increase in the income of a few rich families of the country

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