HSEB Notes on Macro Economics
Class : 11
The term macro economics means large aggregate all. Macro economics always deals with the function of economy as a whole. It doesn’t study an individual unit. Therefore, it is also known as aggregate economics or the theory income and employment. Macro economics study the national incomes, national output, general price level, etc According to Boulding “Macro economics is that part of economics which studies overall, average and aggregate of the system”. It means macro economics is the study of aggregate standard for example, it study how economy determines employment level, national output, national income etc. It is focused on National Policy.
Scope of Macro economics
Theory of income and employment:
Macro economics studies how the level of income and employment is determined by aggregate demand. It also covers theory of trade cycle.
Theory of general price level.
General Price level means inflection and deflection. Macro economics studies how general price level is determined. The theory of money banking, public finance, this all comes under the heading of macro economics.
Theory of economics growth
The theory of economic growth deals with the long term growth of income and output. There are many theory of economics which are studied under macro economics. The theories are:
- Balance growth increase
- Harrod Demar theories
- Big push theories.
Modern theory of distribution
National income is distributed among the different classes of people in a country. Modern theory of distribution says how and what factor determined the relative share of income.
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