Name:Naqibullah jan
Roll No:379
Division:C
Introduction to Macroeconomic
Meaning

Macroeconomics derived(from the Greek prefix
makro-meaning “large”+ economics is a branch of
economics.

Macroeconomics is the study of large part of the
economy i.e., the Whole Economy.

Macroeconomics focuses on the determinants of
total national income , deals with aggregates such
as aggregate consumption and investment and
looks at the overall level of prices instead of
individual prices.

Aggregate Behavior: The behavior of all households
and firms together is known as aggregate behavior.
DEFINATION:
 Prof Boulding, “ Macro economics deals not
only with individual quantities but with the
aggregates of these quantities, not with the
individual incomes ,but with national income , not
with individual price , but with prices level , not
with individual out puts but with the national
output.
Scope of microeconomics

Macroeconomics studies the concept of national income,
its methods and measurement.

It studies the problems related to the employment and
unemployment.

It studies the functions of money and theories relating to
it. Bank and other financial institutions are also a part of
its study.

It studies problems relating to economics growth or
increase capital as real income.

It also studies trade among different countries.
Importance of macro economics

To understand the working of the economy:

In Economic Policies:

In Economic Growth:

In Monetary Problems:
Macroeconomic variable like Total Income, Total Output, Employment
and General price level help us in analyzing the functioning of the
economy.
Macro Economic study helps us to find a
solution to complex economic problems of modern times.
To plan for economic growth, it is
necessary that the macro economic variables like income, output and
employment are evaluated.
Frequent changes in the value of
money affects the economy adversely.
LIMITATIONS OF MACROECONOMICS:

It studies aggregates not individual units the
studies of individual units becomes more useful
than studies of aggregates.

It is useful for developed countries for solving
their economic problems but less useful for
undeveloped countries.

It studies the economy in general not in details.
OBJECTIVES OF MACROECONOMICS:

The objective of macroeconomic policies is to maximize
the level of nation income, providing economic growth to
raise the utility and standards of living of participants in
the economy.

The secondary objectives of Macroeconomics are below

Full Employment

Price Stability

External Balance

Increasing Productivity

Balance of payments Equilibrium and exchange rate
stability.
CONCLUSION
 Macroeconomics
studies the behaviour of a
national or regional economy as a whole. It
is concerned with understanding economywide events such as the total amount of
goods and services produced, the level of
unemployment, and the general behavior of
prices.
THANK YOU