Importance of Macroeconomics and Fiscal Policy after 1929

Abstract: This paper explores the relationship between macroeconomics and public policy, emphasizing their reciprocal influence in shaping economic outcomes. Macroeconomics is highly dynamic and studies the economy as whole in reference to various economic thoughts and theoretical perspectives. Macroeconomics variables, such as GDP, inflation and unemployment, are crucial in informing public policy decisions that aim to promote growth and stability. We also examine the need for public policy and various tools used by the policy makers and governments to achieve specific objectives in the context to tackle various economic issues. Understanding how different policies can impact economy and society as a whole in the application of economic theories and models in public policy. In addition to explaining the role of data and intuition to ensure that the policy aligns in the intended directions rather than only relying upon theoretical understanding. Keywords: Macroeconomics, Public Policy, Theoretical perspectives, Data and Intuition