Learning outcomes of the week

For the first week we studied macroeconomics, the topics we covered were firm

production, cost, and revenue. Macroeconomics focuses on the study of aggregate economic

factors. The economic study covers the entire country's economy and the growth in government

expenditure, total consumption, investment, and fluctuation in the business cycle (Sadat. S. D.,

2017). Basically, it deals with aggregates like the gross domestic product, GNP, and level of

employment. GDP is the aggregate monetary value of all products and srvices produced in the

country which comprehensively defines the country’s economic health.

Importance of macroeconomics professionally

Macroeconomics allows us to understand how a dynamic present economic system

works. This explains how the whole economy works and how national income and employment

rates are determined based on aggregate demand and aggregate supply. This analyzes the factors

that affect a country's economic growth and discusses how to attain and retain a maximum level

of economic development. It helps in identifying the GDP, GNP and other economic indicators,

which contributes to price stability and analyzes fluctuations in organizational operations. This

recommends strategies for inflation and deflation regulation. These factors indicate and define

the condition of the economy and compare it with other country’s data which helps identify the

cause and propose a precise and competent action. This helps to solve economic problems such

as poverty, unemployment inflation, deflation, etc. that can only be addressed through general

study.

Macroeconomics in Business Decision making

Macroeconomics is very useful for managers to make decisions regarding the

management of the labor, capital, resources and income in order to get optimum output. It helps
in developing new economic policies to control and face problems like inflation and deflation

that affect the business. Along with policies, it helps in planning for future demand and

investment based on current GDP, GDP growth and the state of the economy.

Therefore, the knowledge of macroeconomics help in analyzing the economy of a

country that helps in making effective economic decisions.

Reference

Sadat, S. D. (2017). Rethinking macroeconomics: an introduction. International Journal of

Economics, Management, and Accounting, 25(3), 635-639.