Definitions [1]
Definition: Macroeconomics
- Kenneth Boulding: "Macro Economics deals not with individual quantities as such but with the aggregates of these quantities, not with the individual incomes but with the national income, not with individual prices but with the general price level, not with individual output but with the national output."
- J.L. Hansen: "Macroeconomics is that branch of economics which considers the relationship between large aggregates such as the volume of employment, total amount of savings, investment, national income, etc."
- Prof Carl Shapiro: "Macroeconomics deals with the functioning of the economy as a whole."
- Gardner Ackley: "Macroeconomics concerns itself with such variables as the aggregate volume of the output of any economy, within the extent to which its resources are employed with the size of the national income, with the general price level."
Key Points
Key Points: Macroeconomics
Macroeconomics = Understanding the big picture of how India's economy affects your daily life, from job opportunities to price changes to government policies.
Key Points: Micro Economics VS Macro Economics
- Microeconomics zooms in on individuals & firms; macroeconomics zooms out to see the big economy.
- Micro answers: “How is this product priced?” Macro answers: “Is the economy growing?”
- Both are essential to understanding how economies function.
