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    Macro economics is concerned with the analysis of the behaviour of the economic system in totality. It uses macro economic models to explain the behaviour of macro economic variables-national income, aggregate consumption, savings and investments, price level and employment. Macro economics has its normative orientations: it studies the working of macro economic policies of the govt and investigates into the effect of public policies in the economy.

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    Macro economics is concerned with the analysis of the behaviour of the economic system in totality. It uses macro economic models to explain the behaviour of macro economic variables-national income, aggregate consumption, savings and investments, price level and employment. Macro economics has its normative orientations: it studies the working of macro economic policies of the govt and investigates into the effect of public policies in the economy.

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    Macro economics is concerned with the analysis of the behaviour of the economic system in totality. It uses macro economic models to explain the behaviour of macro economic variables-national income, aggregate consumption, savings and investments, price level and employment. Macro economics has its normative orientations: it studies the working of macro economic policies of the govt and investigates into the effect of public policies in the economy.

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    Macro economics is concerned with the analysis of the behaviour of the economic system in totality. It uses macro economic models to explain the behaviour of macro economic variables-national income, aggregate consumption, savings and investments, price level and employment. Macro economics has its normative orientations: it studies the working of macro economic policies of the govt and investigates into the effect of public policies in the economy.

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    MACRO ECONOMICS

    Micro economics deals with the analysis of small individual units of an economy such as individual consumer, individual firms, individual industries and markets and explains how prices of products and factors are determined Macro economics is concerned with the analysis of the behavior of the economic system in totality. So macro economics is called as the economy as a whole.

    Nature of macro economics


    Macro economics as a positive science:as a positive science , it uses macro economic models to explain the behaviour of macro economic variables-national income, aggregate consumption, savings and investments, price level and employment. Macro economics has its normative orientations: It studies the working of macro economic policies of the govt and investigates into the effect of public policies in the economy.

    MAJOR ISSUES IN MACRO ECONOMICS:


    1.EMPLOYMENT AND UNEMPLOYMENT
    2.DETERMINATION OF NATIONAL INCOME 3.GENERAL PRICE LEVEL AND INFLATION 4.BUSINESS CYCLE 5.ECONOMIC GROWTH

    6.BOP AND EXCHANGE RATE.

    The Circular Flow of Income

    The circular flow of income

    The interdependence of goods markets and factor markets

    The interdependence of goods and factor markets

    FIRMS (suppliers of goods and services, demanders of factor services) HOUSEHOLDS (demanders of goods and services, suppliers of factor services)

    The interdependence of goods and factor markets


    (3) Factor demand

    Factor services

    Goods P

    (2) Producer supply

    P PF2 PF1

    S P2 P1 D2 D2 D1

    D1 O QF1QF2 Q

    Q1 Q2

    Factor services (4) Factor supply

    Goods

    (1) Consumer demand

    The circular flow of income

    Consumption, injections, withdrawals and equilibrium

    The circular flow of income Firms

    Factor payments

    Consumption of domestically produced goods and services (Cd)

    Households

    The circular flow of income


    INJECTIONS
    Export expenditure (X) Investment (I) Government expenditure (G) BANKS, etc GOV. ABROAD

    Factor payments

    Consumption of domestically produced goods and services (Cd)

    Net saving (S)

    Import Net expenditure (M) taxes (T)

    WITHDRAWALS

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