micro and macro economics distinguish between

#Micro and macro economics distinguish between full#

It studies the problems of employment and unemployment.ī) Theory of National Income: Macroeconomics studies generation of national income by Income method, expenditure method and product method.Ĭ) General Price level: Macroeconomics studied the inflation and deflation. Scope of MacroeconomicsĪ) Theory of income and employment: Macroeconomics explains the causes behind fluctuations in the level of income and employment. Objectives of MacroeconomicsĪ) To determine income level of the economy.ī) To determine employment level of the economy.Ĭ) To maintain high and sustainable economic growth.ĭ) To maintain satisfactory balance of payment.Į) To stabilize foreign exchange. It is concerned with the aggregates and averages of the entire economy, such as national income, national output, total employment, total consumption, general per capital income, price level etc.Īccording to Shapiro, “Macroeconomics deals with the functioning of the economy as a whole”.Īccording to Boulding, “Macroeconomics deals not with individual quantities as such, but with aggregates of these quantities, not with individual income but with national income, not with individual output but with national output”.

#Micro and macro economics distinguish between full#

Macroeconomics is the study of aggregates or groups of entire economy like national income, full employment, total investment, aggregate demand, aggregate supply etc.

Difference between Micro and Macroeconomics:.

Interdependence of Microeconomics and Macroeconomics.

Microeconomics and Macroeconomics – Interdependence and difference.