Importance of Macroeconomics for MBA Professionals
Economics deals with the social aspects which analyze producing distributing and consuming of products and services. And macroeconomics is the study related to the economy of the nation which is seen as a single most system to interact. Macroeconomics does not actually involve the individual transactions. Macroeconomics usually is related to inflation rates, employment rates etc.
Macro Economics is important is important to the business the MBA professionals should know what all indicators directly affect the business. Even though the economic factors inside the company have the importance. It is the external factors and business environment that affect them.
There are two factors that are related to macroeconomics which is called cross elasticity and income elasticity. Cross elasticity is about the replacement of a good with a related good and Income Elasticity is related to income and demand for a particular good. An MBA Professional should take decisions in different segments of the market.
The following are the Key Indicators of Macro Economics,
Gross Domestic Product (GDP)
Growth of Economy
Supply of Money
The secondary KPI for macroeconomics include the following