Answer in detail.
Explain the scope and subject matter of Macroeconomics.
Explain the scope and subject matter of Macroeconomics.
The scope and subject matter of
Macroeconomics can be describes as follow:
1. Macroeconomics
is concerned with the behaviour of the economy as a whole. It is the study of aggregates and averages of the entire
economy.
2. The
subject matter of macroeconomics is income and employment, inflation, money supply,price level, investment and economic growth and development.
The purpose of macroeconomics is to
present a logical framework for the analysis of these phenomena.
3. Having
understood these phenomena, the aim is how to ensure the maximum level of
income and employment in a country.
4. Since
the subject matter of macroeconomics revolves around determination of the level
of income and employment, therefore, it is also known as ‘Theory of Income and
Employment’.
5. Correct
economic policies formulated at macro level make it possible to control
business cycles (inflation and deflation) in the economy.
The scope and subject matter of Macroeconomics can be describes as follow:
1. Macroeconomics is concerned with the behaviour of the economy as a whole. It is the study of aggregates and averages of the entire economy.
2. The subject matter of macroeconomics is income and employment, inflation, money supply,price level, investment and economic growth and development.
The purpose of macroeconomics is to present a logical framework for the analysis of these phenomena.
3. Having understood these phenomena, the aim is how to ensure the maximum level of income and employment in a country.
4. Since the subject matter of macroeconomics revolves around determination of the level of income and employment, therefore, it is also known as ‘Theory of Income and Employment’.
5. Correct economic policies formulated at macro level make it possible to control business cycles (inflation and deflation) in the economy.
