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Macroeconomics of Malaysia : Report

   

Added on  2020-07-23

10 Pages3020 Words53 Views
Macroeconomics
Macroeconomics of Malaysia : Report_1
Table of ContentsINTRODUCTION...........................................................................................................................1Macroeconomics and its variables..........................................................................................1Effects of monetary policy on Malaysia’s economic growth rate..........................................2Effects of monetary policy on rate of unemployment in Malaysia........................................3Recommendations to boast economic policy of Malaysia.....................................................4CONCLUSION................................................................................................................................5REFERENCES................................................................................................................................7
Macroeconomics of Malaysia : Report_2
INTRODUCTIONMacroeconomics is a branch of the economics field that studies how the aggregate economybehaves. In accordance with this context, this assignment will cover the aspects ofmacroeconomics and its variables. Further, the monetary policy of Malaysia will be discussedand how it impacts on the national economy will be assessed in this report. Monetary policyplays multiple role in the national economy of the country (Goh and McNown, 2015). In thiscontext, it impacts on unemployment rate in Malaysia will be covered in this report. Moreover,recommendations and suggestions will be formulated after analysing the monetary policy onwhich the government can boost the national economy of the country effectively and efficiently.Macroeconomics and its variables.The study of economics as a whole is termed as macroeconomics. The motive ofmacroeconomics is to analyse the cyclical trends that rotates in the economic environment ofcountry (Karim and Azman-Saini, 2013). As compared to micro economics, the macroeconomicscovers the larger area and analyses the national economy growth rate, unemployment rates,inflation rates and exchange rates. Macroeconomic events and the state of the economy affect allmembers of society. Businesspeople forecasting the demand for their products and servicesshould anticipate how consumers’ incomes will grow. Pensioners and people living on fixedincomes have concerns about potential price increases that could affect the cost of living.Unemployed persons looking for jobs always hope that the economy will grow fast so that firmswill increase their labour force (Smets, 2014). The variables of Macroeconomics are grossdomestic product (GDP), Unemployment Rate, Inflation Rate and International trade. Thedescription of variables are provided below:Gross Domestic Product (GDP): The gross domestic product refers to the aggregatevalue of products and services produced in a country during a year. It determines thegrowth and productive level of the economy of the country effectively and efficiently.For example the current gross domestic product value of Malaysia is $913.593 billion(Karim and Karim, 2014). Unemployment Rate: The second most vital variable or component of macroeconomicsis the unemployment rate. Unemployment rate is measured in the country by comparingnumber of people unemployed in the country by dividing them with total population. 1
Macroeconomics of Malaysia : Report_3

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