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Macroeconomics explained in 9 simple points!

1. The word Macro has been derived from the original Greek word ‘Makros’

2. It studies in aggregate or uses the aggregate approach of study

3. It studies the factors in total and thus is termed as Aggregative Economics

4. For e.g. Aggregate Demand, Aggregate Supply, National Income, Aggregate Saving, National Output, Aggregate Investment.

5. All the economic factors are studied as a whole group at once and thus it is called as macro-analysis.

6. Unless the micro-analysis is carried out, macro-analysis will not be possible. Here we can take the example of National Income where, we first have to calculate the income earned by each person and then the total is made.

7. It is also called as lumping method since the analysis is done in total.

8. The main four trade cycles which are studied in macroeconomic are:

  • Prosperity
  • Recession
  • Depression
  • Revival/recovery

9. The main aim of macroeconomics is the welfare of the country and thus macro-analysis aims to increase employment levels, aggregate demand levels and ultimately help decrease the poverty.

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