Macro Economics – Importance, Limitations and Difficulties

Meaning of Macro Economics

The word macro means big. Thus, in Macro Economics, either the whole economy is studied or those big units which are related to the economy as a whole.

Definition

In the words of Prof. Boulding

Macro Economics deals not with individual quantities as such but aggregates of these quantities, not with individual incomes but national income, not with individual output but with national output.

Thus, macro economics studies the various groups related to the whole economy, like, national savings, national income, national consumption, total employment, total production, etc..
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