1. Economic Policies

Macro Economics is extremely useful from the view point of the fiscal policy. Modern Governments, particularly, the underdeveloped economies are confronted with innumerable national problems. They are the problems of over population, inflation, balance of payments, general under production etc. The main conscientiousness of these governments rests in the regulation and control of over population, general prices, general volume of commerce, general productivity etc.

2. In General Unemployment

Redundancy is caused by deficiency of effectual demand. In order eradicate it, effective demand should be raised by increasing total investment, total productivity, total income and consumption. Thus, macro economics has special significance in studying the causes, effects and antidotes of general redundancy.

3. In National Income

The study of macro economics is very significant for evaluating the overall performance of the economy in terms of national income. This led to the construction of the data on national income. National income data help in anticipating the level of fiscal activity and to comprehend the distribution of income among different groups of people in the economy.

4. In Economic Growth

The economics of growth is also a study in macro economics. It is on the basis of macro economics that the resources and capabilities of an economy are evaluated. Plans for the overall increase in national income, productivity, employment are framed and executed so as to raise the level of fiscal development of the economy as a whole.

5. In Multi-dimensional Study

Macroeconomics has a very wide scope and covers multi-dimensional aspects like population, employment, income, production, distribution, consumption, inflation, etc.

6. In Monetary Problems

It is in terms of macro economics that monetary problems can be analysed and understood properly. Frequent changes in the value of money, inflation or deflation, affect the economy adversely. They can be counteracted by adopting monetary, fiscal and direct control measures for the economy as a whole.

7. In Business Cycle

Moreover, macro economics as an approach to fiscal problems started after the great Depression, thus its significance falls in analysing the grounds of fiscal variations and in providing remedies.

8. For Understanding the Behaviour of Individual Units

For understanding the performance of individual units, the study of macro economics is imperative. Demand for individual products depends upon aggregate demand in the economy. Unless the causes of deficiency in aggregate demand are analysed it is not feasible to understand fully the grounds for a fall in the demand of individual products. The reasons for increase in costs of a specific firm or industry cannot be analysed without knowing the average cost conditions of the whole economy. Thus, the study of individual units is not possible without macro economics.

9. Helpful in understanding the functioning of an Economy

Modern economy has become a very complex affair. Several economic factors which are inter- dependent operate in it. To have an understanding of its organization and functioning one cannot depend on individual unit alone. Study of an economy as a whole, has therefore, become very essential.

10.   Balance of Payment

It explains factors which determine balance of payment. At the same time, it identifies causes of deficit in balance of payment and suggests remedial measures.