Macroeconomics is a branch of the economy that focuses on large or general economic factors, which include overall Gross Domestic Product (GDP), employment rate and interest rates. As per my rudimentary understanding, all macroeconomic factors are interconnected, which suggests that changes in single macroeconomic factor produce a ripple effect in the economy. From this information, I can deduce that each macroeconomic factor has its relevance, and each factor can strongly affect the lives of ordinary people (D’Souza).
As all macroeconomic factors are interconnected, which make all of the important factors; however, some of these factors are more relevant and significant than others. Also, some of these factors are studied to learn about the health of the economy and to project how the economy will perform in short and medium terms. Some of these macroeconomic factors strongly and directly affect the lives of the individual. For instance, interest rates affect not only the size of investment in the economy but also employment rate. Therefore, studying macroeconomic has numerous benefits, as it provides a vital understanding regarding how the economy works.
The economy is serious and a hot subject, which affects both politics and society. For instance, during the Presidential election campaign, the economy was the major subject. Presidential candidates had devised their election campaign around core economic issues, such as employment, wage, trade, and economic growth. Each presidential candidate spent his/her energies to explain how he/she would improve economic conditions. The significance and relevance of the economy have excited me to learn about the principles and dynamics of it. I want to learn how the American economy works and how deliberate changes about certain factors of economy, through financial and government institutions, facilitate a government in realizing political-economic objectives. I intend to learn about factors such as aggregate demand and aggregate supply and how they determine price and output. I am interested in learning what causes inflation, how it affects economy/individuals and how it is curbed by different financial institutions (Federal Reserve).
HOW WILL MACROECONOMICS BENEFIT ME?
Interest rates are of great importance as interest rates directly affect demand for loans. The type of interest rate, which interests me, is a student loan. It is because I may apply for a student loan, as college and university education in the United States are quite expensive. Most of the students, in the United States, apply to acquire a loan for the completion of their education; however, some acquire loan more easily than others. I want to learn why some of the students more easily acquire loans, while it is difficult for other students to access and acquire loans. Also, I want to learn why private loans are expensive than federal loans. It will increase my chances of acquiring a healthy loan with small risk attached to it (Carey).
I hope the study of macroeconomics will aid me in learning how economy produces employment and how different policies, and instruments are used to change the employment rate in the economy. It is a very serious subject, as it affects the lives of ordinary people. My understanding regarding generation of employment, in an economy, is poor; if it improves, I will learn during which period economy produces lucrative employment opportunities. It will directly improve my corporate prospects, which means that I could live successful social and corporate lives.
Macroeconomics is a study of the overall economy, which improves our understanding regarding the economy and expands our knowledge regarding its functioning. One of the primary benefits of studying macroeconomics is that I can implement this information/knowledge to improve my corporate prospects, which will have a direct impact on my social life.
I understand that macroeconomics’ subjects are complex and they require time to understand them truly. The reason for this could be the complex nature of macroeconomic variables that are influenced by several factors. As I acknowledge the benefits of studying macroeconomics; therefore, I will not hesitate to allocate time and resources to understand the economy, its various factors, and how these factors produce various kinds of changes within an economy.
Work Cited
Carey, Erin. “An expensive future: loan debt continues to grow for students.” Daily Emerald. Daily Emerald, 7 May 2018. Web. 29 May 2018. https://www.dailyemerald.com/2018/05/07/an-expensive-future-loan-debt-continues-to-grow-for-students/.
D’Souza, Errol. Macroeconomics. Pearson Education India, 2009.
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