What are the problems that study macroeconomics?

Unemployment: Unemployment is a problem because the factors that are engaged in production is not using the employment potential to the maximum. Unemployment means the economy is not attaining the macroeconomic goal of full employment. Due to lower production and problem of scarcity in the economy, unemployed recieved less income, resulting in gradual reduction in standard of living. Unemployment rate tells us the number bof persons who b could not be employed. If the GDP is higher, output will be higher. Hence more labour is required. Unemployment will be lower. General better the economy unemployment will be lower and vice versa.

Inflation: General raise in prices of goods and services over a vtime, is inflation. The inflation can be from month to month or b year to year. With the consistent and persistent increase in nprices, economy do not attain stability. Inflation leads vto average increase. Some goods or services increase more than average, some below average or some average. This will turn out to be a problem because the inflation reduces the purchasing power of money, which in turn reduces financial wealth lowering the standard of living. Also greater uncertainty surrounds long term planning and haphazard distribution of wealth

Business Cycle: Unemployment and inflation tend to raise at different phases of business cycle. Some time unemployment is more of a problem and inflation less of a problem and vice versa. To understand this we shall study it in two different primary phases of business cycle. Contraction phase: IN this phase there is general decline in production because there is decline in demand. Because of this there is contractual of employment, since less goods are produced. In this phase employment is a problem. Since demand is less inflation will not be a problem. Expansion Phase: During this phase production increase. More employment created. Because demand is more than supply, prices tend to increase, leading vto inflation. In this phase inflation is the problem. The robust production demands higher employment and employment will not be a problem.

Interest rates: Interest rates affect businesses. Interest are the charges levied by banks on the loan. If the interest rate increase, it directly affect the business. Higher interest will result in higher expenses and businessmen will not be enthused to invest. Indirectly consumers are also affected. As a result individuals have to pay higher for borrowing money resulting in blower demand for large products.

Stagnant growth: Stagnant growth is a situation where in supply of products is not increasing or it is decreasing below the bench mark. For a fair growth in economy increase in production is needed. The production should keep pace with the aspirations of the people to raise the standard of living. But in stagnant economy production do not meet the demand of population and the economy stagnate or decelerates. Macroeconomic goals are not attained. The factors affecting stagnant growth are quantity and quality. This is affected by the quantities of production which are labour, capital, land and entrepreneurs. If few are lazy and do not work, the quantity of labour is affected. Government regulations and high tax dissuade businessman from investment resulting in lower creation of jobs and lower production, because of lower quantity of capital.

Explain the essence and reasons of unemployment

People can be unemployed for many reasons:

One reason for unemployment is voluntary. Some of the unemployed have saved enough money so they can quit unfulfilling jobs. They have the luxury to search until they find just the right opportunity.

The second cause is when workers must move for unrelated reasons. They are unemployed until they find a position in the new town.

The third reason is when new workers enter the workforce. That includes students who graduate from high school, college or any higher degree program. They look for a job that fits their new skills and qualifications.

That's a primary reason for youth unemployment.

The fourth reason is when job seekers re-enter the workforce. These are people who went through a period in their lives when they stopped looking for work. They could have stopped working to raise children, get married or care for elderly relatives.

These four situations are an unavoidable part of the job search process.

The good news is that frictional unemployment is usually voluntary and short-term.

45.Nominalintrest rate is 10 %, real intrest rate is 6 %. What is inflation rate?

10%-6% = 4%

46. Nominal intrest rate is 10 %, inflation rate 4% What is real intrest rate?

10%-4%=6%

Explain social and economic concequences of unemployment

 Unemployment - one of the most urgent problems of any society based on free market principles.

But mostly, this phenomenon affects the economy in transition, which are characterized by the formation of labor markets and labor.

The State, which formally guarantees its citizens the right to work, to overcome the serious economic and social consequences of unemployment.

Social and economic consequences of unemployment are on a par with the problems of poverty and instability in society.For the majority of both developed and developing countries, this phenomenon becomes a problem, which poses a potential danger of the growth of social tension.Once the unemployment rate reaches a critical value, the company is in an unstable state, which threatens social upheavals.