The theoretical and practical importance of macro economics is briefly discussed as:
1. It is helpful in understanding the functioning of macro economics system.
2. It explains the factors which determine the level of national income and employment in as economic.
3. It explains the circular flow of national income in an economy.
4. It explains the problem of unemployment which is a main problem of developing countries.
5. It explains the various aspects of international trade such as terms of trade balance of payments, foreign exchange etc.
6. It studies the causes of fluctuations in the business cycle and to formulate the policies to control inflation and deflation.