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Macroeconomics: Study Of The National Economy

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MACROECONOMICS
Macroeconomics is the study of the national economy is seen as an interactive system simultaneously. It is concerned, not with individual transactions, but aggregates with the economy, including the national income, the inflation rate and the unemployment rate, growth, and the business cycle, and so forth. At the theoretical level, it seeks to explain how the national income grows, how it fluctuates and what happens then to the prices and unemployment. On the positive side, which test theories against the evidence presented by the competing economic statistics, and it is estimated the required numerical relationships to build predictive models. On the application level you see what would serve the policies to promote economic …show more content…

and these are either the creation of dominance effects in the amount of money or the amount of payment methods to suit the surrounding economic conditions.
The aim of this is to influence either absorb excess liquidity or cash injection stream of new economy.
Interest has been evident in the monetary policy of economic thought during the last century, then taking this attention especially during the monetary crisis and economic instability, which witnessed this century is growing. Monetary policy is seen as an essential part and an important part of economic and public policy of the state components.
The evolution of the concept of monetary policy, the evolution of ideas and theories across time successive …show more content…

and from here show the importance of monetary policy in the classical analysis.
The balance in the commodity market is through a tie between savings and investment ... and that the balance of the two markets (cash and commodity) would achieve the overall economic balance. So can the monetary authorities to exercise their responsibility to achieve monetary and raise economic growth by achieving a balance between the two markets and the stability of here show the importance of monetary policy in the Keynesian analysis.
The contemporary critical theory they are trying to combine the objectives sought by the classical monetary policy and goals of the Keynesian monetary policy. It can visualize the features of contemporary monetary policy through its importance in influencing the overall economic activity in order to achieve stability and monetary growth and economic influencing on the side of aggregate demand and aggregate supply. Moreover, the contemporary monetary policy cannot influence the economic activity effectively without correlate measures and fiscal policy measures, especially with the general economic policy of the state of various branches in

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