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How the country's financial system is related to key macroeconomic variables?

Economics

How the country's financial system is related to key macroeconomic variables?

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Macroeconomic affecting the country's financial system in the following ways:

1. Gross Domestic Product: The GDP matches the complete value of product and services produced in a country during a particular year. Thus, the sustainable increase in the number of product or services increases the economic growth of a nation over time.

2. Unemployment Rate: This factor indicates the state of the labor market in the nation.

3. Inflation: Inflation refers to a rise in the level of prices measured by the consumer price index. The CPI index explains how money values change over time. Inflation is the primary concerns for the economists, and policymakers in a nation because it imposes a different kind of costs in the economy.

4. International Trade: Macroeconomics influences international trade as, a consequence budget surplus refers to an excess of tax revenue, overspending of government in an economy. The budget deficit is a shortfall of tax income from government spending in an economy.