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Why do economists and managers pay attention to measurements of macroeconomic activity?
Why do economists and managers pay attention to measurements of macroeconomic activity?
Expert Solution
Managers and economist presents their existence so that they could give benefits to the whole society or nation as a whole. They do not aim to benefit any individual. They exist here for all the sectors or agents of the economy whether that is consumer, producer and so on. Each and every policy formulated in the economy influences majority of the population. Therefore, they attempt to check out the pros and cons for each policy and formulate all actions of the policies. They observe the behavior of consumption, investments and so on. They note the direction of splitting of income that is how much income is strived to the consumption and how much is strived to the savings. And how the level of saving influences the investments in the economy. Considering the investment measurements, the estimation about employment is noted. With the influence in employment opportunities, influence in per capita income takes place. As a result, it influences the levels of poverty in the economy. Thus all of these variables and the measurement of these variables reflects the current and the expected future image of the country which portrays the extent of economic conditions of the economy.
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