Impact of Macroeconomic Policies on Emerging and Advanced Economies

MACROECONOMICS
POLICIES

Contents
INTRODUCTION...........................................................................................................................3
Main Body.......................................................................................................................................3
Emerging market has caused growth in the prices of commodities such as oil..........................3
Reason behind the boom in the Advanced Economy..................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Macroeconomics is a study of a nation or a economy as a whole. It includes activities
such as total amount of sales, changes in the prices of a commodity and level of unemployment.
There are various tools that are used in the macroeconomics includes Government spendings and
taxation, monetary policies that helps in influencing the money supply and also controls actions
of banks. This helps in achieving equilibrium in the market. It is a position where the market
supply and market purchases are equal (Arestis, 2018). This report will analyse the impact of
growth and merits and demerits of policies. Also explain the responses of policy on their
aggregate supply and aggregate demand in the economy.
Main Body
Emerging market has caused growth in the prices of commodities such as oil.
Economic growth refers to the increase in the production of goods and services. It is
basically compared with the another period (Auray and Eyquem, 2020). It is measure in nominal
and real terms. In traditional context it is measured in terms of Gross National Product (GNP).
Economic Growth is generally refers to the rise in production that is correlated with the average
marginal productivity which directly leads to change in the level of consumer and also causes
change in the consumer sastisfaction.