Question

Why do economists and managers pay attention to the measurements of macroeconomic activity? When you answer this question do a little research on several elements of these measurements such as durable goods, non-durable goods etc.?

Answer 1

Managers and economist have to identify the policies not for themselves or one individual but for the nation as a whole. They have to formulate the policy in such a way that majority of people can benefit from this. They look at the behavior of consumption of goods, savings made by them, investment made from saving. If the consumption is more on durable goods, savings can be done as durable goods are long lasting while on the other hand if the consumption is non durable goods, consumer can save less as these are the daily used products. From the investment level economist look at the employment figures of the nation as more is the investment more people get the job which raises the employment level. As employment level is raised, per capita income rises which reduces the poverty level. When they look at the economy as a whole or all people inside the nation, these discussed measurements become more important.