
It is that branch of economics, which studies the aggregates, and average of the economy and causes of fluctuations in them with a view of focusing on economy as a whole.
OR
The study of average of the entire economy such as national income, aggregate output, total employment, total consumption, saving and investment of prices.
Areas of Macro-Economics:
The
following areas are covered in macro economics.
- National output and national income.
- Balance of trade and balance of payment.
- Internal value of money and external value of money.
- Savings, investments and employment.
- Economic growth and economic development.
- Fluctuations in economic activities i.e. trade or business cycle.
- Monetary, fiscal and commercial or trade policies.
- General price level, inflation, deflation and devaluation.
- Public finance i.e. public revenue, public expenditure, public debt and deficit financing.
- Aggregate output and aggregate supply of goods and services.
- Nationalization and privatization of the corporate sector.
- Helpful in understanding the determination of income & employment.
- Determination of general price level in the economy.
- Information about economic growth and development of the country.
- Helps in the measurement of national income and its disturbution of country.
- Provides knowledge about international trade & business cycle.
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