Question

What is meant by Macro Economics ?

Hint:

Macroeconomics is often called the "Theory of Income and Employment" because these are its core themes.

Answer 1

Step 1: Understanding the Concept:
The term 'Macro' comes from the Greek word 'Makros', meaning large. It focuses on the "Big Picture" of the economy.
Step 2: Detailed Explanation:
Macroeconomics deals with economic aggregates and averages. Its main areas of study include:
1. National Income: The total value of all final goods and services produced in a country.
2. Employment: The total level of employment and the causes of unemployment.
3. General Price Level: The study of inflation (rising prices) and deflation (falling prices).
4. Economic Growth: The long-term increase in the economy's productive capacity.
It helps governments formulate fiscal policies (taxes/spending) and monetary policies (interest rates/money supply) to stabilize the economy.
Step 3: Final Answer:
Macroeconomics is the study of aggregates like total consumption, total investment, total savings, and the general price level of an entire nation.