Macroeconomics is one of the most important sciences for those who work in large companies, in departments that engage in foreign trade and in the highest government bodies of the financial sector. Such an importance lies in the fact that this science is interested in large-scale incidents, and examples of macroeconomics will help to better understand its importance. But before proceeding, it should be said that more examples could be cited - only they all do not fit the size of the article. But first you need to find out what macroeconomics is studying. This economic science studies processes that occur at the state level.
What are some examples of macroeconomics?
As already mentioned, macroeconomics deals with problems at the state and interstate relations level. For simplicity, it was decided to talk only about those that are related to the state. Therefore, only 5 options will be considered where macroeconomics helps. Life examples:
- Inflation in the state.
- The national wealth of the country.
- The unemployment rate: causes and methods of overcoming.
- Economic growth of the state.
- State regulation of the economy.
As you can see, the affected macroeconomic objects are important not only theoretically, but also for citizens of states.
Inflation
Inflation is a process of depreciating money. If it has a size of up to 10 percent per year, then it is called moderate. At a rate of 10 to 50 percent, inflation is called galloping. And with indicators exceeding 50 - hyperinflation. Fighting inflationary processes, the state can issue money or withdraw part of the funds from circulation. Also, state regulation of the economy can counter inflation .
But the main task facing the macroeconomy is to minimize losses, the occurrence of which helps inflation. Ideal for domestic stability is the absence of inflation and deflation, but so far such opportunities and levers of influence that would have made it possible to achieve such a state have not been provided to the general public.
National wealth of the country
The study of the country's national wealth is necessary in terms of awareness of its economic potential. Despite lengthy research, in different countries there is still no single method by which national wealth will be considered. It represents the total value of economic tangible and intangible assets that are valued at market price. Only assets held by residents of this country inside or outside its borders are taken into account. In this case, financial obligations should be deducted.
Speaking about examples of macroeconomics, it should be said that this item of the plan is very important for understanding the processes. Knowing the volume of national wealth of the country, the government can count on its use by citizens if conditions are provided for this. So, it is necessary to squeeze corruption as much as possible from the offices of officials (and ideally eliminate it altogether), reduce paperwork when using funds, facilitate interaction between future and already implemented entrepreneurs on the one hand and the state apparatus on the other.
Unemployment
The more people involved in the economy, the larger its size. In the textbooks on economic sciences themselves, citing examples of macroeconomics, they often write that reducing unemployment by 1 percent can increase the country's GDP by 2.5 percent. As a means of overcoming unemployment, macroeconomics offers:
- Protectionism.
- Making payments of state subsidies to enterprises that take the unemployed to work.
- Removing barriers to labor mobility.
- Retirement age reduction.
- The prosecution of the unemployed in order to motivate them to seek employment.
- Creating state-owned enterprises or assisting private capital in creating jobs.
Some examples of macroeconomics may seem too harsh, but it should be remembered that they primarily provide a way out of crisis situations. And in such cases, all means are good.
The economic growth
Economic growth allows you to navigate the degree of success of the state development strategy. In most cases, an increase of 3% is considered normal, which allows measured development of the country at a pace so that the population can gradually feel the changes. Theories of macroeconomics suggest that economic growth cannot go on continuously, therefore collapses occur from time to time. The task of this science is to propose such regulatory options that will minimize the significance of the crisis for people.
State regulation of the economy
One of the most effective ways of influencing the economy, which is commonly used in many states during crisis situations, is state regulation of the economy. It allows you to direct resources to those areas of the country's economy in which support is needed for a highly professional way out of this situation. Economic life in a difficult crisis situation is supported by the state budget. So, subsidies may be introduced for individual enterprises. Or instead, companies will receive orders for their products. Everything is done so that people can save their jobs and
purchasing power. We can say that state regulation of the economy is aimed at avoiding losses in the future by moving part of the working population into orbit of economic life. Now you not only know what macroeconomics is studying, but you can also give real examples of its implementation.