Influence of Macroeconomic Variables (Balance of Payments, Inflation, Economic Growth, and Unemployment) in the Process of Policy-Making in a Country

Abstract

This paper mostly analyses the microeconomic variable effects in the economic structure of the country. The effects on unemployment and inflation decrease the economic growth of the country. For analysing the economic structure of the country, this research study has adopted secondary qualitative data analysis and a descriptive research design. In this case, unemployment and inflation are related to each other. Mostly unemployment increases then inflation decreases and if inflation decreases then unemployment increases. For this reason, to develop the country's economic condition, an effective policy-making process can help to improve this situation. With the bits of help of economic policies, the country can get the chance to build a strong economic structure in an effective manner Keywords : Microeconomic, Phillips’s curve, inflation