Scope of Macroeconomics

Scope of Macroeconomics

Macroeconomics deals with national income and its determination, national income fluctuation, consumption and saving in the economy, role of money in the economy, economic stability and growth of economy.

1.    Study of Aggregate

Macroeconomic is study of aggregate, and therefore macroeconomics does not deal with issues related to individuals and firm. Macro economist study the national level issues & problems i.e. unemployment, Growth in the country.

2.    National Income

Macro Economics tell about different theories of national income, importance of national income, methods of calculating national income, key determinant of national income.

3.    Inflation

Macro economics also study the causes of inflation in the country and possible measures of controlling inflation. Macro economics also analyze negative effects of inflation on the national economy.

4.    Employment

Macro economies also explain the different theories related to employment i.e. classical theory, Keynesian theory, and modern theory of employment. Macroeconomic explains possible causes of unemployment in the country.

5.    Growth Rate

Macroeconomics also deals with different theories related to national growth .Macroeconomics explains importance of steady growth for economic progress of a country. This study helps government to formulate policies for achieving desired growth targets.

6.    Consumption & Saving

Macroeconomics also studies different theories of consumption and saving. Macroeconomics explains importance of saving in the national economy and its role in the investment.

7.    Role of Money

Macro explains the role of money and its importance in the national economy. Marco explains difference concept associated with money i.e. investment, Inflation, saving, consumption. Macroeconomics also explains price mechanism in the national economy.