Understanding Marco economics as a student

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Introduction

Hello everyone and how are we all doing this fine Sunday night, no doubt preparing for the week ahead, it's a shame that due to the present asuu strike that has lingered on many of us are away from school.

I do hope that we find something productive to do, might be steemit might be tech skills atleast anything.

Being an economics student I feel it's only right I share some of my knowledge on this community, economics is something that affects us one way or another.

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The word macro economics is a combination of two words macro meaning large in size and economic meaning the study of human behaviour in relation to scare means which have alternative uses.

Macro economics is a branch of economics which studies the effect of economic model on a large scale rather than in units, basically macro economics tries to understand how economic decisions can affect the masses either for good or for bad.

The government of any given country solely relies on various macro economic models to try analyse which economic decisions will be able to solve the problems of the people.

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They are various elements of Marco economics such as

1. Aggregate demand and supply
2. Fiscal policy
3. Unemployment
4. Balance of payment
5. Inflation
6. Deflation

The above are some examples of some economic variables that are capable of affect the mass of the population, hence this variables are known as macro economics variables and for the sustained development of any given country the government must be able to offer critical solutions to this problems.

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Unemployment rate

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This is the total number of people in the country who though are willing and able to work are not able to find meaningful employment in the country over the total number of people in the country.

At any given time in any country be it Nigeria or Uganda they exist a certain percentage of people who though are willing to work are unable to find work.

When a country has a high unemployment rate it therefore means there are high numbers of people who do not have any gainful employment and this in turns leads to poverty and violence.

Like the popular saying an ideal mind is the devil's workshop hence it spells disaster for any gievn country to have a high number of unemployment, the government bof any given country is always trying to ensure that the unemployment rate is always at a minimum.

It is worth knowing that it is basically impossible to have a situation whereby they exist no unemployed in the society, this is so because they would always be those who do not wish to work, and also those who are physically unable to work hence the government main priority is to try to keep the unemployment level to the barest minimum at any given point in the country.

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Balance of payment

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Balance of payment come in okay when we are talking about international trade between two or more countries.

Balance of payment is the difference between the amount we import and the amount which we export, it very difficult for any country to be self sufficient in the sense that they do not need to export resources to other countries nor import recourses from other countries.

Hence since it is impossible for any given country to be solely independent they need to engage in international trade and this international trade.

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They are two forms of payment in international trade

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Balance of payment surplus
This is a situation where by a given country is exporting more than they are importing, what this means is that they are attracting more revenue through the sales of export and less through the import of materials from others.

Hence such a country would always be positive on Thier books, example of counties with surplus balance for payment are China, Russia, tiawan and others.

Deficit balance of payment

This is a situation whereby a country is importing more than they are exporting hence they are spending more money than they are making.

Countries that engage in such form of international trade would always have a weak currency than Thier counter parts.

An example of such country that practices such are Nigeria, venuzela, Bangladesh and many others.

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Inflation

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This is a situation whereby there is a steady but constant decline in the purchasing power of goods and services in the country.

When inflation occurs we normal see high prices of goods and services in relation or previous times , why this occurs is due to the fact that the value of the currency has slowly depleted over time.

Tip information :

Why everyday things are getting more expensive in Nigeria and other countries facing inflation is due to the fact that there is a steady decline in the value of naria in the international market.

The prices of food are not actually increasing its is simply the fact that the naira is getting weaker.

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I give an example a Nigerian who buys sardine from. France for resale in Nigeria.

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✓ When he started his business the exchange rate was 200naira to 1euro.

✓ 1 sardine was sold at 1euro

✓ He had 200,000 naria at the start of his business so he bought 1000 sardine.

✓ And resold them for 250 reach making 50,000 gain.

✓ After 2 months when he travelled to France for restock he found out that the exchange rate had changed.

✓Current exchange rate 400 naria = 1 euro

✓Hence 1 sardine now equals to 400

✓He can now buy only 500 pieces or sardine.

✓He comes back to Nigeria and increases the price to 500 so he can still maintain his 25% profit after resale.

Summary
From this we can see that the price of sardine did not change what actually changed was the exchange rate and this resulted in an increasing in the price of the sardine in Nigeria.

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Macro economics is very important piece of knowledge that we ought to have in our arsenal as an individual and a students, in so many ways we could relate macro economics to the current crypto market using aggregate supply and demand.

Any student that gets a good understanding of macro economics can break free of the crowd mentality which many of us live our life in today.

I hope you all had an interesting read.

_{I would be very grateful to receive any support from @steemcurator01}