Macroeconomics is useful in several ways. Some of them are discussed under the following headings:
a. To understand the working of economy:-Macroeconomics gives bird’s eye view of the economic world. It helps in understanding how the macroeconomic variables behave in the aggregate. Study of the national income, aggregate output, gross saving and output, national expenditure is very essential to understand the working of the economy.
b. Helpful in formulation of economic policies:-Macroeconomic analysis provides a sound basis for the formulation of government’s economic policy. The economic policies for the removal of poverty, employment and price stabilization must be based upon reliable statistics of the aggregate variables.
c. Helpful in controlling economic fluctuations:-Economic fluctuations like trade cycle, inflation, deflation etc. need to be handled appropriately in appropriate period to correct them. This will give a finite direction to the economy. For this the knowledge of macroeconomics is essential.
d. Helpful in international comparisons:-Only macroeconomic variables like national income, total output, aggregate demand, and consumption behaviour and investment patterns of different countries can be easily compared. Macroeconomics provides the necessary information for this.
e. National Income:-National income is the barometer that scales the growth of a country. It analyses the overall performances of the economy within a given period of time and allow us to compare that performance with the post. National income, basically, is an aggregate concept.
Thus, macroeconomics studies about the problems of unemployment, inflation, economic instability and economic growth. It also enriches our knowledge of functioning of the whole economy by studying the behaviour of national income, output, investment, saving, and consumption.