The following highlights the six major macroeconomic issues
1. Employment and Unemployment • Unemployment refers to the involuntary idealness of the resources • Society's actual output will be less than potential • Objective of government policy is to ensure full employment • Absence of involuntary unemployment 2. Inflation • Constantly rising prices of commodities and factors of production • Opposite situation is deflation • During inflation some people gain and some people loose • Change in income distribution pattern • Objective of the government is to ensure price stability • Absence of inflation and deflation 3. The Trade Cycle • Periodic fluctuations in the business and economic activities • Tendency of output an employment • Periods of good trade alternate with the periods of bad trade • Boom Periods of high output and employment with period of slump period and low output and employment • We study the cases of business cycle and suggest remedial measures 4. Stagflation • Co- existence of inflation and unemployment • Most common macro economic issue today • Every country in the world either developed or under developed is now struggling to fight the disease of Stagflation. 5. Economic Growth • Trend in Nations output over a log period of time • Expansion of societies production capacity( New land for cultivation r new factories) Three major sources of growth Growth of labor force Capital formation Technological progress 6. Exchange rate and balance of payments • Balance of payment is the systematic record of all economic transactions between other countries and home countries in a year. • Rate at which a country’s currency is exchanged for other currency • Discover the causes and consequences of such changes