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Introduction of Macroeconomics
The term Macro-economics can be precisely recognized as the
branch of economics that deals with the study of the entire economy including national, regional and the global economy with respect to performance, conduct, decision-making and lastly, structure. Macroeconomics principally lays more emphasis on the variables that pursue methodical and expected course of conduct and can be easily evaluated autonomously on the basis of the judgments of various representatives who decide their extent. More particularly, it is a review of national economies and the estimation of national income.
The concept of macroeconomics is comparatively broader than the notion of microeconomics. Moreover, one needs to have precise knowledge of microeconomics to efficiently understand the concepts of macroeconomics.
Macroeconomics includes study of
various indicators like price indices, GDP and unemployment rates so as to fully recognize how the entire economy operates
. It formulates structures that elucidate the association among distinct factors namely; inflation, savings, consumption, international trade investments, national income and output, unemployment, international finance etc. Additionally, macroeconomics models and their predictions are employed by both large organizations as well as governments to aid growth and analysis of economic strategies and business policies.
Further, microeconomics includes several theories and topics out of which some have been listed below:
Price and Inflation
Gross Domestic Product GDP
Components of GDP
Capital and Investment
The Labor of Market
Wages and Income
Concept of Money, Wealth and Income
Banks and Interest Rates
Growth Theory and Production Function
The Classical Model
Keynesian Cross model
The complete Keynesian model
The neo-classical synthesis
Exchange rate determination and the Mundell-Fleming model
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