Macro Economics Essay Example | Topics and Well Written Essays - 2000 words - 1

Macro Economics - Essay fontowth structures of the variables could be assumed to be concluding that the frugality in the period of study is displaying a steadfast situation in spite of the regular periods of booms and recessions that are a part of the regular business hertz which every frugality has to pass through. Apart from that, if the long run pattern has to be considered, it is found that the economy exhibits a stable condition.The pattern of movement of the macroeconomic variables in an economy are the ones that exhibit the modal value that the economy is moving at present, i.e., the present situation of the economy. The patterns of behavior that they exhibit are very alpha to take decision about the future plans and policies that the economy should be subjected to. For example, if an economy is going through a high inflationary phase then, the appropriate monetary policy should be to reduce the flow of property in the economy and thus check the amount of liquidity in t he country. However, before doing so, it is also requirement for the decision makers to find out the exact root of the disturbance, i.e., if the excess money supply in the economy and not a low regularize of interest is the cause behind the rising inflation. Thus the immenseness of checking the behavior of the macroeconomic variables is of key importance for the nationals and particularly the decision makers of a nation. In this paper, attempt has been make to study the pattern of behavior of a number of relevant macroeconomic variables, viz., the inflation rate, the gross investment, the instrument investment, the nominal rate of exchange between Australian and US dollars, the real exchange rate, the real rate of interest, the private household consumption, the unemployment rate, productivity of labour, the supply of money in the economy and the current account balance. The movements of solely these variables taken together indicate how stable the economic situation is and how stable it is going to be everywhere the future years and thus provide a