What are the Uses of Macro economics in the National Economy?
Macro economics is the use of monetary policy (increasing / decreasing the money supply) or fiscal policy (increasing /decreasing demand for products/services through stimulus packages or job cuts) to smooth out the peaks and valleys in business cycles. Generally business and economies run better with smoother business cycles so the use of macro economics monetary and fiscal policy is to minimize lengths and depths of recessions and fight inflation. For example, in a recession (as seen in the last from 2008-2010), countries all over the world implemented both fical policy through simulus packages so to boost prevent national economies from going into further recessions. Recently in Canada, they were seeing higher than expected inflation rates so in order to prevent minimize inflation, they implemented monetary policy by raising interest rates by 0.25%. Hope that helps!
