What is macroeconomics? What are the features of macroeconomics? |
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| Ans : The term ‘Macroeconomic’ is derived from the Greek word’ Makros’ which means large. So macro- economics is the study of an economic as a whole. It studies the behavior of aggregate economic variables such as national income but not individual income, aggregate expenditure but not individual expenditure, aggregate production, total employment, inflation etc.
According to K.E Boulding, “Macroeconomic deals not with individual quantities but with aggregate of these quantities, not with individual income but with national income, not with individual price but with price level, not with individual output but with national output.
Macroeconomic explains how the level of income and employment is determined and analyses the factor that brings fluctuation in income and employment. Therefore, macro-economics is also known as theory of income and employment.
Feature of Macroeconomics
a) It is aggregate economics.
b) It is concerned with the behavior of the economic as a whole.
c) It is also called theory of income and employment.
d) It’s objective is to determine aggregate output, employment and general price level and their rate of change.
e) It’s principles variable are national income, total consumption, total expenditure, total saving, total investment etc.
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