INTRODUCTION TO MACROECONOMICS Dr Kishor Bhanushali What is
INTRODUCTION TO MACROECONOMICS Dr Kishor Bhanushali
What is macroeconomics? Macroeconomics deals with economic affairs in the large, it concerned the overall dimensions of economic life. Macroeconomic deals with the major economic issues, problems and policies of present times. Macroeconomic is study of major economic aggregates or total National income, money, total savings, total investments, unemployment, inflation, balance of payments, exchange rate etc. are the crucial economic aggregates.
Macroeconomic Goals Price stability Economic stability Exchange rate stability Full employment Economic growth Economic justice Improvement in standard of living Eradication of poverty
Macroeconomic Policies Monetary policy Fiscal Policy Trade policy Industrial policy EXIM policy Banking policy Planning policy
Macro Theories Theory of income and employment Theories of trade cycles Theories of economic growth Theories of inflation Theory of fiscal policy Theory of monetary policy
Importance of Macroeconomic Studies Macroeconomic provides an explanation to the functioning of economy Empirical evidences Policy orientation National Income and employment theory and monetary policy Dynamic science
Limitations of Macroeconomics Macroeconomic variables aggregate are regarded as homogeneous whole despite of internal heterogeneity Macroeconomic Behvarious involves fallacy of aggregation Macroeconomics is concerned with general economic welfare
Difficulties in Measurement of National Income Production for self consumption Services of housewives Unpaid services Defense services Accurate and reliable data Regional diversities People are indifferent to official inquiries and non cooperative Inefficient staff
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