Macroeconomics


Ajit Kumar AJIT KUMARWISDOM IAS, New Delhi.

Microeconomics is derived from Greek Prefix "macr(o)" meaning "large" + economics) is a branch of economics dealing with the performance, structure, behavior, and decision making of the entire economy. This includes a national, regional, or global economy.
 
Microeconomics is primarily focused on the Individual Agents i.e. Firms and Consumers and how their behaviors determine Price and Quantities in specific markets.

Macroeconomics is a broad field of study. It studies Aggregated Indicators such as GDP, Unemployment Rates, and Price Indices to understand how the whole economy functions. Macroeconomists develop models that explain relationship between factors such as National Income, Output, Consumption, Unemployment, Inflation, Saving, Investment, International Trade and International Finance.

Macroeconomics models and their forecasts are used by both Governments and large corporations to assist in the development and evaluation of economic policy and business strategies. 

Fiscal Policy and Monetary Policies
are good examples of how economic management is achieved through these government strategies.


Tuesday, 17th May 2016, 11:03:17 PM

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