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Introduction To Macro Economics For SPPU

The document provides an introduction to macroeconomics. It defines macroeconomics as the branch of economics that deals with the performance and behavior of an economy as a whole. It studies aggregate economic variables such as national income, unemployment, inflation, and economic growth at a national level. The scope of macroeconomics includes distribution theories, employment theories, trade cycle theories, national income theories, and theories of international trade. Macroeconomics is important for policymakers and economic planning at a national level.

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Fitri Apriyani
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167 views15 pages

Introduction To Macro Economics For SPPU

The document provides an introduction to macroeconomics. It defines macroeconomics as the branch of economics that deals with the performance and behavior of an economy as a whole. It studies aggregate economic variables such as national income, unemployment, inflation, and economic growth at a national level. The scope of macroeconomics includes distribution theories, employment theories, trade cycle theories, national income theories, and theories of international trade. Macroeconomics is important for policymakers and economic planning at a national level.

Uploaded by

Fitri Apriyani
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Introduction to Macro Economics

. / S.Y.B.A.
Semester Pattern
Sem-III
Presented By

Dr. Madhuri Vartale , Asst. Prof., Department of Economics

Dr. D.Y. Patil Arts, Commerce and Science College,


Pimpri, Pune
Macro economics
Economics is a branch of social science because it
deals with human behaviour. It constitutes human wants,
needs, scarcity of the resources, production of goods and
services, economic choice, and the law of demand and
supply, So that generally we can say that it is the most
closely associate with everyone.
Advanced Economic
Theory

Micro Economics Macro Economics


Introduction
 Macroeconomics is the branch of economics which
deals with performance and behaviour of an economy
as a whole
 It considers the aggregate changes in the
economy.
 It deals with the studies of general economic problems
such as unemployment, poverty, economic growth rate,
gross domestic product.
 It studies the national income of an economy
 It expresses the inflationand deflation condition
 It recovers the economy t by policy measures and deals
with the trade cycles in the economy.
 It formulate the public policies and public
expenditure.
 Macroeconomics studies the monetary issues like
money, banking and reate of interest etc.
Definition
 Generally, ‘A study of economics in terms of
output of the nation especially all sectors in the
economy.’

 Ackley Gardner,” Macroeconomics concern with


such variables as the aggregates volume the
output of an economy, with the extent to which
its resources are employed, with the size of the
national income and with the general price level.”
Definition

Macroeconoictheory is that part of economics which


studies the overall averages and aggregates of the system.”
- Prof. Boulding

Macroeconomics deals with the fuctioning of the economy


as a whole.
-Shapiro
Nature of Macroeconomics
 Fundamentally macroeconomics is concerned with theories
of factor pricing and income theories.
 It is study of aggregates of volume of output of the economy.
 It is concerned with the problems of economic fluctuations,
unemployment, inflation or deflation and economic growth.
 It explains the size of the National Income.
 It deals with the economic problems of the economy like
poverty, business cycles, inflation , deflation etc.
 It is explains the stabilize the general price level and work for
balancing the economy.
Theories of
Employment
National
Theories
Income

Theories of
Trade cycle
growth &
Theories
Development

Scope of Theories of
Distribution
Theories Macro International
Trade
Economics
Scope of Macroeconomics
 Distribution Theories: the firms are produces goods and
services with the help of land, labour ,capital and organization.
The macroeconomics studies how to pay for the contribution of
these factors of production and how to pay the reward for their
contribution. The analysis of distribution of these factors of
production can be studied under the macroeconomics.
 Theory of Employment :- The macroeconomics deals with the
social problems in the economy. It studies the problem of
employment. The level of employment is depends on the savings
and investment of the people. It works on the solution for
employment generation with proper implementation of monetary
policy of the economy.
Scope of Macroeconomics
 Trade cycle theories:- The economic situations are not
stable. It is flexible, Many times the imbalance between
saving and investment responsible for the fluctuations. Price
of the product can be change due to some economic reason
that reasons are studied under the macroeconomics.
 Theories of National Income:- This is the most
important concept of the economy. The total production of
goods and services can be counted under the national income
. Macroeconomic analysis the total income of the nation,
expenditure and budgeting can be studied in
macroeconomics.
Scope of Macroeconomics
 Theories of International Trade:- The macro
economics enlightening the average trade of goods and
services. We can analyses the terms of trade and balance of
trade through total export and import of the country. Thus
we can determine the impact of international trade on the
economy.
 Theory of General Price Level:- It is useful for the
analyses of product pricing. The macro economic analysis
useful for dealing the problems of money, banking, business
fluctuations due to various issues like inflation , deflation,
recession, pandemic period, depression of the economy to
stabilize the price level by implementing proper monetary
and fiscal policy.
Importance

 The study of macroeconomics helps not only for a


specific company but entire industries.
The knowledge of macro economics is essential for
policy makers.
It is very useful for the economic planning and
development of the nation.
It explains the relationship between the price level of
goods, income and total output of the production.
It is helpful in analysis of overall dimensions of the
economy.
Importance

The study of macroeconomics helps not only for a


specific company but entire industries.
The knowledge of macro economics is essential for
policy makers.
It is very useful for the planning and development of
the nation.
It explains the relationship between the price level of
goods, income and total output of the production.
It is helpful in analysis of overall dimensions of the
economy.
Importance

It helps to explain the problems like poverty,


unemployment, business cycles, etc.
It is useful to formulate proper policies and
coordinate international economic policies.
It helps to bring stability in price level and
analyses fluctuations in trade cycles.
It studies the application of micro economic
theories and overall working of economy at
macro level.
Limitations of the Macroeconomics
 Problems of measurements of aggregates.
 Contradiction between overall and individual changes.
 Implications assumed about individuals units from the
aggregative tendency may not always correct.
 Obsession of aggregative approaches :- for ex. Suppose set of
fruits such as bananas and mangos , The satisfaction and price
level are differ about these fruits we can’t make any
meaningful aggregates from the purchasing of fruits in the
market.
 Excessive Generalization could not applicable for individual
observations.
Thank you …!

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