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#Advantages and disadvantages of micro and macro management how to#
#Advantages and disadvantages of micro and macro management full#

Understanding of national income: Macroeconomics teaches the computation, use and application of national income data.

it employs policy measures such as fiscal policy, monetary policy, income policy etc to deal with complex economic problems like unemployment, poverty, inequality, inflation, etc.

Empirical evidences: Macro studies are based on empirical evidence of theoretical issues.

It provides an exploration to the functioning of an economy in general: By using macroeconomic tools and the technique of economic analysis, one can understand the working of the economic system in a better way.

its merits can be seen from the following: The analysis of macroeconomics has an unique theoretical and practical significance.

#Advantages and disadvantages of micro and macro management full#

Important objectives such as economic growth with full employment and stability can be better realised by ensuring optimum allocation and utilisation of productive resources.it is essential that resources, which are scarce and have alternative uses, should be allocated and utilised in an optimum manner. Allocation and utilisation of resources: it is further useful in making optimum allocation and utilisation of resources.Pricing policies or distribution policies can be appropriately framed with the help of this approach. Formulation or framing of policies: This approach is also useful in formulating or framing various economic policies.in such an economy, there is an absence of central planning in taking these economic decisions. in a free enterprise economy, an individual is the center of all activities. Are influenced by the behavior of individuals.

#Advantages and disadvantages of micro and macro management how to#

Various economic decisions such as what to produce, how much to produce, how to produce, how to distribute, etc. Working of free economy: it helps in understanding the working of an economy, particularly a free enterprise economy.There are some advantages of microeconomics are following: it is useful, both practically as well as theoretically. Microeconomics has acquired a lot of importance in economic analysis.