SCOPES OF MACROECONOMICS

Macroeconomics considers the performance of the economy as a whole. It is possible to define this subject as the study of behaviour for economic aggregates and index such as:

- Gross National Product or GNP.

- National Accounts as expenditures in consume and investment,

- Savings, national debts, public déficit etc.

- Inflation or prices behaviour.

- Interest Rate.

- Exchange Rate.

- Employment and unemployment rates.

- Balance of Payments and so on.

When we study macroeconomics we are looking at topics such as economic growth; inflation; changes in employment and unemployment, our trade performance with other countries (i.e. the balance of payments) the relative success or failure of Government Economic Policies and the decisions made by the Central Banks in the Countries.

There exist some subfields to specific concerns to Macroeconomics, such as:

- Economic Growth.

- Economic Development.

- Welfare and Poverty Satus.

- International Trade and so on.

Short entries:

- Economic Growth: This is the study of trends in national output and living standards.

- Unemployment: Study the reasons for the changing structure of the work force.

- Inflation: Analize the prices evolution, who loses and who gains with inflation.

- International trade: Study the flows of goods and money in the international trading markets.

- Interest rates: Respond How do changes in interest rates affect consumers and businesses.

Objectives of Government: Economic PolicyGovernment management of the economy is always a key political issue, not least at election time, when the government must defend its economic record over the previous years.

Each government must set targets and objectives when it assumes power, and often, economic objectives lie right at the heart of a government's overall strategy.

The Labour Government has several current objectives, and scopes of economic policy, for example: Stable low inflation with prices rising at a rate within the target range of 1.5% - 2.5% per year; Sustainable growth as measured by the rate of growth of real Gross Domestic Product; Higher levels of investment and productivity; To improve international competitiveness; High employment, it means that the government wants to achieve full-employment rates; Rising living standards and a fall in relative poverty;

Sound government finances (including control over government borrowing and the national debt).

The key point is that Government through its economic policies, aims to improve the economic welfare of the country as a whole.

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