Macro Economics and its application in Economic System

Introduction

Macro Economics means a System may be looked at as whole or in terms of its innumerable decisions making units such as consuming units or individual Consumers and household producing Units, Firm, farms, business and mining Concerns. The macroeconomics is, on the whole, is a combination of all components of Economies in a wider sense. It covers all the needs of any country. If the macroeconomics indicator s are favourable to any country, it will become a donor to the developing Country. But the devaluation of the Currency may affect all the Countries who depend on its exchange rates.

Functions and objectives of the Macro Economics:

 The functions of the macroeconomicsinclude overall economic study and all the items which come under the domain of the Economy.Be it social, commercial economical segment or component of the economy. It is an integral part of the Economical Development of any country. The development is observed in terms of micro and Macro economical status of any country.

The main objectives of the macro Economics

Fiscal Policy

 it denotes the usesof taxes and Government Expenditure. The Government Expenditure come into tact in distinct forms. First the Government Purchases these comprise Goods and services. The other part is the taxation Policy affects

Monetary Policy

The second major instrument of the macroeconomics is the monetary policy which the government conducts through managing national money.

Imports and Exports

The macroeconomics indicator depends a lot on imports and exports of the country. If the country like the US finding rich markets in any part of the World then it will access the buyers market and export its goods. The demand depends on the quality of the Product in the international markets. The More standard the product, the more buyers will be involved and similarly, it will increase the demand for the product in international markets. The country which needs the products will import the goods of its demand from then exporting Countries. Thus, these are also integral parts of the macroeconomics.

Foreign Exchange Rates

 The foreign exchange rates are determined through the Oil and goldreserves and based on the import of certain products. There are stocks exchanges Present in every country for Forex trading. Many people are benefiting from currency trading. Especially the DOLLAR. EURO and Pounds Sterling.

Devaluation of Dollar and Impact on other Countries

As it was already mentioned that most Countries depend on the Currency of Dollar for its Exchange policy. So if the government of the United States increases the value of Dollar so it will affect the countries dependent on Dollar and their debt will multiply. Whereas if the US Government lowers the Currency then it will affect all the Forex trading and currency-trading people besides the countries whose economy depends upon the Dollar s thus Us can influence the economies of the other country

Conclusion

In nutshell, it is clear that the macroeconomics is an integral part of the Economy of any country and helps them to sustain their economy and bring some economic reforms and make Fiscal and Monetary policy to escape deficit budgeting and other Components related with the Economy. It also helps the Country to draft policies of trade development and export promotion.