What is Macro Economics - Meaning - Importance - Limitations
Previously, we studied about Micro Economics but here, we will take into account another important branch of Economics i.e., Macro Economics. Micro Economics is the study of the economy as a whole. We study aggregate demand, aggregate supply, Natio nal Income, General Price Level, Aggregate Output, Total Consumption, Savings and Investment of the entire economy. Macro Economics Importance / Significance 1. It helps us in the economic development because it tells us how an economy grows i.e., how to the aggregate demand is determined in order to proper utilize one product’s supply. How to determine Exchange Rate and increase exports and decrease imports of a country. 2. We take into account of the whole economy and not see the individual performance of some units that are growing well but overall the economy is in depression phase. Limitations of Macro Economics 1. It sees the economy as whole and hence ignore the welfare of...