Macro Studies
Meaning and Definition:
According to Professor J.M Culbertson, “macroeconomic theory is a theory of income, employment, prices and money”.
According to P.A. Samuelson, “macroeconomics is a study of the behavior of the economy as a whole. It examines the overall level of a nations output, employment, prices and foreign trade”.
Nature, Scope and importance of Macroeconomics
As a method of economic analysis macroeconomics is of much theoretical and practical importance. 1. To understand the working of the economy
The study of macroeconomic variables is indispensable for understanding the working of the economy. Our main economic problems are related to the behavior of total income, output, employment and the general price level in the economy. These variables are statistically measurable, thereby facilitating the possibilities of analyzing the effects on the functioning of the economy. As per the Tinbergen observes, macroeconomic concepts help in “making the elimination process understandable and transparent”. For instance, one may not agree on the best method of measuring different prices, but the general price level is helpful in understanding the nature of the economy.
2. In Economic Policies
Macroeconomics is extremely useful from the point of view of economic policy. Modern governments, especially of the underdeveloped economics, are confronted with innumerable national problems. They are the problems. They are the problems of overpopulations, inflation, balance of payments, general underproduction, etc… The main responsibility of these governments rests in the regulation and control of overpopulation, general price level, general under volume of trade, general output, etc… As per Tinbergen “working with macroeconomic concepts is a bare necessity in order to contribute to the solutions of the great problems of our times”. No government can solve these problems in terms of individual’s behavior. 3. In General Unemployment
The general
According to Professor J.M Culbertson, “macroeconomic theory is a theory of income, employment, prices and money”.
According to P.A. Samuelson, “macroeconomics is a study of the behavior of the economy as a whole. It examines the overall level of a nations output, employment, prices and foreign trade”.
Nature, Scope and importance of Macroeconomics
As a method of economic analysis macroeconomics is of much theoretical and practical importance. 1. To understand the working of the economy
The study of macroeconomic variables is indispensable for understanding the working of the economy. Our main economic problems are related to the behavior of total income, output, employment and the general price level in the economy. These variables are statistically measurable, thereby facilitating the possibilities of analyzing the effects on the functioning of the economy. As per the Tinbergen observes, macroeconomic concepts help in “making the elimination process understandable and transparent”. For instance, one may not agree on the best method of measuring different prices, but the general price level is helpful in understanding the nature of the economy.
2. In Economic Policies
Macroeconomics is extremely useful from the point of view of economic policy. Modern governments, especially of the underdeveloped economics, are confronted with innumerable national problems. They are the problems. They are the problems of overpopulations, inflation, balance of payments, general underproduction, etc… The main responsibility of these governments rests in the regulation and control of overpopulation, general price level, general under volume of trade, general output, etc… As per Tinbergen “working with macroeconomic concepts is a bare necessity in order to contribute to the solutions of the great problems of our times”. No government can solve these problems in terms of individual’s behavior. 3. In General Unemployment
The general