Meaning and Definition of Macroeconomics
Define or explain the following concepts
Meaning:- The term Macro is derived from Greek word “Makros” which means large. It is the branch of economics, which studies the behaviour of all economics units combined together. Macroeconomics is a study of aggregates. It is the study of the economic system as a whole. Therefore, it is also called as Aggregate Economics.
Definition:- “Macroeconomics deals not with individual quantities as such, but with aggregates of these quantities; not with individual incomes but with the national incomes; not with individual prices but with the price level; not with individual outputs but with the national output’.
In Macroeconomics, we study how an economy as a whole operates. It focuses on the aggregate measures such as Aggregate Demand, Aggregate Supply, Aggregate Price Level, etc. It studies how these variables are determined and how they change over time. It helps us in understanding various economic relationships and economic problems at the economy or aggregate level.
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- Meaning and Features of Macro Economic