OVERVIEW

OF
MACRO-ECONOMICS
 INTRODUCTION TO MACRO-
ECONOMICS
 Economics involves :

Study of agent/society.
Utilizes scarce resources.
Satisfy unlimited wants.
Obtain better understanding.

 Branch of Economics : Micro-

Economics & Macro-Economics.

 MACROECONOMICS : Brief History.

 Macroeconomics deals with the overall

 SCOPE OF MACRO-ECONOMICS

 Employment and unemployment

 Inflation

 Business Cycles

 Economic growth

 Balance of Payment
 DIFFERENCE BETWEEN MICRO-ECONOMICS
& MACRO-ECONOMICS
 Nature.

 Scope.

 Purpose.

 Need.

 Objective.

 Instrument.

 Analysis.
 RELATIONSHIP BETWEEN MICRO-
ECONOMICS AND MACRO-ECONOMICS

 Micro-economics is the study of

economics on a small scale and
macro-economics is on a large scale.
 Micro-economics and Macro-
economics are not mutually exclusive.
 Macro-economics has a foundation in
Micro-economics and vice-versa.
 Both reflect one another .
 Micro-economics and Macro-
economics analysis are
complementary to each other.
 IMPORTANCE OF MACR0-
ECONOMICS
 Indispensable for Economic
Policies.
 Solution of Economic Problems.
 Study of National Income.
 Study of Economic Fluctuations.
 Helpful in the Development of
Micro-economics.
 International Comparisons.
 LIMITATIONS OF MACRO-
ECONOMICS
 Too Much Emphasis on
Aggregates.
 Aggregate Variables do not
Provide True Picture.
 Misleading Aggregates.
 Difficulty in the Measurement of
Aggregates.
THE END