It is apparent that the three primary concerns in macroeconomic analysis are: Inflation, economic growth and unemployment. All which are factors that may deter advancement of a particular nation. Inflation pertains to the sustained increment in a country`s price level of various incentives within a duration of time. Economic growth on the other hand, relates to the ability or capacity of a particular economy to produce goods and services within a prescribed duration of time ( Agénor & Montiel, 2015 ). Unemployment on the other hand is a situation whereby eligible people in various capacities are actively seeking to get employed but they end up being unsuccessful. All the concerns will be elaborated within the course of this analysis.
As formerly mentioned, economic growth is used to assess the state of the economy at a particular point in time. While measuring such growth, it is classified into either adjusted form or non-adjusted (Agénor & Montiel, 2015) . In addition, growth is used to assess the health status of a particular status. This is achieved by evaluating the standards of living of the inhabitants of the country. In a situation whereby the standard of living is essentially high and growth is present, the factor of inflation comes into the picture.
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The essence of inflation is such that it determines the purchasing ability of the consumer in a certain economy. Whenever inflation increases the purchasing power decreases meaning that one ends up purchasing less of the good than they initially would. For economists, inflation is used to gauge how strong a particular product is in reference to a given economy ( Agénor & Montiel, 2015 ). In macroeconomics, inflation does not necessarily pertain to the increase in prices of goods and services; instead, it relates to the supply of money within the economy. Inflation has significant influence on the economic growth of a particular country and as well impacts on the unemployment rate within a particular country.
Essentially, unemployment refers to a situation whereby individuals seek to get into employment though they end up being unsuccessful in getting unemployment opportunities ( Agénor & Montiel, 2015 ). The unemployment rate determines whether or not the economy of a particular nation is booming or not. Various means have been used previously to calculate the rate of unemployment; though critics intimate that they are not applicable since they do not involve individuals seeking additional part time employment as well as those who have totally given up looking for employment ( Agénor & Montiel, 2015 ).
It is evident from the above illustrations that economic growth, inflation and unemployment are indeed the primary concerns in macroeconomics. They may act as deterrents to the progression of a particular nation. How well a particular country manages them determines the extent of development. It is also clear that all are interlinked, such that they affect one another; indicating that it is important for the administrators of a particular country to seek to manage these primary concerns for the benefit of the nation as a whole.
Reference
Agénor, P. R., & Montiel, P. J. (2015). Development macroeconomics . Princeton university press.
