Meaning and Definition

Macro Economics

    Meaning and Definition

  • Meaning

       Macroeconomics is part of economic theory and its the study of ggregates and averages of the entire economy.t describes how the economy as a whole functions and how the level of national income and employment is determined on the basis of aggregate demand and aggregate supply.Micro econmoics helps to achieve the goal of economic growth, higher level of GDP and higher level of employment.microeconmoics suggests policy measures to control inflation and deflation.

    Definition

         Study of the behavior of the whole (aggregate) economies or economic systems instead of the behavior of individuals, individual firms, or markets (which is the domain of Microeconomics). Macroeconomics is concerned primarily with the forecasting of national income, through the analysis of major economic factors that show predictable patterns and trends, and of their influence on one another. These factors include level of employment/unemployment, gross national product (GNP), balance of payments position, and prices (deflation or inflation). Macroeconomics also covers role of fiscal and monetary policies, economic growth, and determination of consumption and investment levels.

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