Definition of 'Macroeconomics'
The term Macro has been taken from the Latin word Macros which means big. The field of economics that studies the behavior of the aggregate economy. Macroeconomics examines economy-wide phenomena such as changes in unemployment, national income, rate of growth, gross domestic product, inflation and price levels. Macroeconomics Concerns
Total Industrial Output
Gross Domestic Product
Growth of Output
Aggregate Price Level
Rate of Inflation
Total wages and salaries
Total corporate profits
Unemployment in the
Total number of jobs
Therefore, as is clear from the above, the following issues/subjects define the scope of Macro Economics: 1.
Aggregates of national income and its determination
Theories of Income and Employment.
Theory of Money and Banking.
Balance of Payment.
Scope and Importance of Macro Economics
Macro Economics is of much theoretical and practical importance. Let us see what are the importance and the scope where macro economics are being used. 1.
To Understand the working of the Economy
The study of macro economics variables is requisite for considerate the operation of the financial system. Our main economic complexities are associated with the performance of total income, irredundant and the normal price scale in the fiscal. These variables are geometrically measurable in this manner facilitating the probabilities of analysing the effects on the functioning of the economy. 2.
In Economic Policies
Macro Economics is extremely useful from the view point of the fiscal policy. Modern Governments, particularly, the underdeveloped economies are confronted with innumerable national problems. They are the problems of over population, inflation, balance of payments, general under production etc. The main conscientiousness...
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