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Economics 3

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8 views

Economics 3

.

Uploaded by

razakapoor1
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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In recent years, the subject-matter of economics falls in two main branches, and Macro-economics. Lord J.M.

Keynes,
an eminent economist, has played an important role in the development of economics. He is called, "The Father of
Modern Macroeconomics'. He wrote a book on Macroeconomics named "General Theory of Employment, Interest
and Money" published in 1936. Macroeconomics is also alternatively called Theory of Income and Employment.

Under Macroeconomics, we try to understand how the level of income and employment is determined
and how unemployment can be removed.

In real terms, Macroeconomics deals with the economy in its totality. It helps to solve the central problem
of full employment of resources in an economy which forms the subject matter for study of
Macroeconomic theory.

Most importantly, Macroeconomics has enabled to properly organise, collect and analyse the data about
national income and coordinate with international economic policies.
Meaning Of Macroeconomics
The term Macro in English has its origin in the Greek term Makros which means Large. In the context of
macroeconomics, 'large' means economy as a whole. Thus, macroeconomics is defined as that branch of
economics which studies economic issues or economic problems at the level of an economy as a whole

It studies such economic questions that concern the welfare of all residents of a country. These questions
are like of employment for the residents, growth of output in the economy, the problem of price rise (called
inflation) or the problem of depression (lack of demand for goods and services across different sectors of
the economy)and so on. Macroeconomics also studies how government can improve the state of economy
of a country.
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Emergence Of The Discpline

Macroeconomics emerged as a separate branch of Economics in 1936 when the British Economist John

Maynard Keynes published his celebrated book “The General Theory of Employment, Interest and
Money.”
Definition of Macroeconomics

In the words of M.H. Spencer,


"Macroeconomics is concerned with the economy as a
whole or large segments of it. In macroeconomics,
attention is focused on such problems as the level of
unemployment, the rate of inflation, the nation's total
M.H. Spencer, output and other matters of economy-wide significance."

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