Macro Economics

  • Macro economics is the study and analysis of economic system as a whole

  • Macro economics is called income theory. It explains the level of total production and why the level rises and fall.

  • In Macro we study how the aggregates and the averages of the economy as whole is determined and what causes fluctuation in them.

  • In macro we study the general price level in country.

  • In macro we study the aggregate demand of the entire country.

  • Here we study the national income of the country.

  • It shows how an economy grows. It gives bird eye view of economic world.

  • Individual ignored altogether. It is individual welfare, which is the main aim of economics. Increasing national saving at the expense of individual welfare is not a wise policy.

  • It over looks individual differences for instance, the general price level may be stable but the prices of food grains may have gone spelling ruin to the poor.

  • The economy as a whole is more important for formulation of useful economic policies for the nation.