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Importance of macroeconomics in curriculum
Macro means a large unit. Macro economics is that branch of knowledge which deals with the economy as a whole. It is an aggregate analysis, popularly known as Income or Employment theory.
Macroeconomics helps in investigating the principles, problems and policies related to achievement to growth and expansion with productive capacity. It helps in assuming allocation of resources, distribution of income and population growth rate. It helps in dealing with the central problem of efficient or fuller utilisation of resources as the resources are limited and if the resources are not fully utilised it will lead to unemployment or underemployment. It also helps in the growth of resources through advancements in technologies and methods. It also deals with the problems relating saving, investment, inflation, employment etc.
Macroeconomics is the study of aggregates such as national income, total employment, aggregate spending, aggregate saving, aggregate consumption, total investment, general price level etc. It aims at determining the levels of national income, total employment of resources and general price level. It is an aggregate economics which helps in dealing with the problems of the whole economy. It helps the determination of equilibrium, level of income and employment. It helps in solving the problems of excess demand and deficit demand.
Macro economics also helps in budget formation. It helps in analysing the foreign exchange rate and balance of payments. It also helps in determining investment multiplier as well as its working. It's also explains the functions of money and banking in the economy.
Difficulties faced by students while solving macroeconomics problems or Assignments
National economy is the most difficult and confusing topic of macroeconomics. Students who are good in mathematics also face a lot of problem in such macroeconomics topics. Then the function of money and banking is not that much difficult but only the concepts CRR and SLR create a little bit of confusion. Then budget is a vast concept and creates a lot of problems to students. The topic of determination and income are also quite confusing and difficult. Foreign trade and balance of payment need to be learnt very clearly and conceptually as it is complicated and vast as well. Basic theories look similar in macroeconomics; students get confused because of them. Concepts of aggregate demand, aggregate supply is vast, and graph creates confusion as they are interrelated to the concept of demand and supply which is a part of microeconomics.
Few macroeconomics topics which required getting support online for problem's solutions
The concept of demand and supply must very clear to the students.
Formulas and terminologies of national income have to be very clear to the students. Aggregates of nation income and their relationship should also be focused. The difference between the nation income, national disposable income, private income, personal income and personal disposable income must be known by the students.
Terminologies like domestic territory, normal resident of a country, concept of consumption of fixed capital or depreciation, compensation of employees, operating surplus, income from property, income from entrepreneurship, undistributed profits, mixed income, indirect taxes, subsidies, net factor from income from abroad, transfer payments, direct taxes, surplus from public sector, corporate savings etc must be learnt properly by the students. These will help the students to study macroeconomics.
All the three functions of money and functions of a central bank should be clear to the students.
Aggregate demand and aggregate supply theories, formulas and consumption function as well as saving function and their graphs should be thoroughly studied by the students.
The equilibrium level of income and employment confuse the most to students it should be very clear. Various types of concepts like involuntary unemployment, full employment and under employment should also be known by the students.
The budget includes terminologies and concepts of receipts (revenue receipts and capital receipts) & expenditure (revenue expenditure and capital expenditure), direct taxes & indirect taxes, balanced & unbalanced budget, budgetary deficit; which should be categorized by the students even in their daily life practically.
Foreign trade and balance of payment need focus, and it is conceptual so students should learn that properly.
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