What Is Macroeconomics?The Macroeconomics is a study of what is happening to the economy as an entire, the economy-in-large, is termed as macroeconomy.
Macroeconomists' major tasks: to make an effort to figure out why overall economic activity increases and decreases: the value of production, total incomes, unemployment, and inflation. Intermediate variables such as interest rates, stock bazaar values, and exchange rates--that participate in a major role in determining the overall levels of production, revenue, employment, and prices.
Why Macroeconomics is important?
Three reasons are as: self-interest (that is, realizing the condition you are in), cultural literacy, civic responsibility that is your duty to cast your vote, and to understand whether who you are voting for can deliver what he or she assures.Politicians consider strongly that their success at the polls based on the state of the economy. They feel that fairly or unfairly they acquire the credit when economy does well and go through the blame when economy does poorly. One of the major outspoken political leaders on this subject was mid-twentieth-century American politician Richard M. Nixon, who in public blamed his defeat in the 1960 presidential election the Eisenhower administration's refusal to take action in opposition to an economic slump.
"The topic was thoroughly talked about by the Cabinet....Several of the Administration's financial experts who were present in the meeting didn’t share the bearish prognosis. There was strong sentiment not in favor of utilizing the spending and credit powers of the Federal Government to change the economy, unless and until situations evidently indicated a main recession in prospect. It was a bitter experience how, in both 1954 and 1958, slumps which hit bottom before time in October donated to substantial Republican losses in the House and Senate.... The bottom of the 1960 plunge did come in October.... the unemployed roles were greater than before by 452,000. All of the speeches, television broadcasts, and precinct work in the globe couldn’t counteract that one hard fact."
Economic historians carry on to dispute the reasons for the "stagflation"-- a combination of relatively high inflation and high unemployment--that inflict the American economy in early 1970s, after Richard Nixon finally became President. Was it the outcome of his manipulation of economic plan for political objectives so that in his 1972 reelection campaign the economy will look better than it had in 1960? The proof is conflicting. But no matter how much Nixon's plan contributed to stagflation, all have the same opinions that his main objective was not to create a healthier economy over the long term but to have the economy look good in 1972.
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