i). National Income:
*Measurement of national income and its composition by sectors are the basic aspectsof macroeconomic analysis.
* Its composition provides a long term understanding of the growth process of aneconomy.
ii). Inflation:
* A study increase in general price leve
iii). Business Cycle:
* Almost all economies face the problem of business fluctuations and business cycle.
* The cyclical movements in the economy need to be carefully studied based on aggregateeconomic variables.
iv). Economic Growth:
* The growth and development of an economy and the factors determining them couldbe understood only through macro analysis.
v). Economic Policies:
* Macro Economics is significant for evolving suitable economic policies.
* To solve the basic problems, to overcome the obstacles and to achieve growth.
1)Explain the importance of national income.
*To know the relative importance of the various sectors of the economy and their contributiontowards national income.
* To formulate the national policies such as monetary policy, fiscal policy and other policies
*To formulate planning and evaluate plan progress.
*To build economic models both in short - run and long - run.
* To know a country’s per capita income which reflects the economic welfare of the country
* To arrive at many macro economic variables namely, Tax – GDP ratio, Current
Account Deficit - GDP ratio, Fiscal Deficit - GDP ratio, Debt - GDP ratio etc.
2.Discuss the importance of social accounting in economic analysis.
i). In Classifying transaction:
*Economic activities in a country involves innumerable transactions relating tobuying and selling, paying and receiving income exporting and importing, payingtaxes, etc.
ii). In Understanding Economic Structure:
* It helps us to understand the structure of the body economic.
iii). In Understanding different sector and flows:
* It’s throw light on the relative importance of the different sectors and flows inthe economy.
iv). In Clarifying relations between concepts:
*It’s help in clarifying the relationships between such related concepts as netnational product at factor cost and gross national product at market prices
v). In Guiding the Investigator:
*Social accounts are a guide for the economic investigator by indicating the typeof data which might be collected for analyzing the behavior of the economy
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