Definition of Macroeconomics by Different Authors

Definition of Macroeconomics by Different Authors

The word macro comes from the Greek word macros which means large or whole. Macro Economics is the analysis of the overall aspects of economics. Macroeconomics discusses issues such as national income, employment, and monetary policy of a country’s overall economy.

In macroeconomics, the economy of a country is discussed as a whole without discussing any particular person or organization separately. Problems are analyzed collectively without being discussed individually.

Definition of Macroeconomics by Different Authors:

According to Kenneth E. Boulding, “Macroeconomics deals not with individual quantities as such but with aggregates of these quantities, not with individual income but with national income, not with individual price but with the price- level, not with individual output but with national output.”

J. L. Hansen defines, “Macroeconomics is that branch of economics which considers the relationship between large aggregates such as the volume of employment, total amount of savings, investment, national income, etc.”

According to G. Ackley, “Macro-economics is the study of the forces or factors that determine the level of aggregate production, employment, and prices in an economy and their rates of change over time.”

According to Professor Carl Shapiro, “Macroeconomics deals with the functioning of the economy as a whole.”

RGD Allen defines, “The term macro-economics applies to the study of relations between broad economics aggregates.”

Lipsey and Chrystal define, “Macroeconomics is the study of how the economy behaves in broad outline without dwelling on much of its interesting but sometimes conferring detail.”

According to Culbertson, “Macro-economics is the theory of income, employment, prices, and money.”

Dornbusch and Fischer define, “Macroeconomics is concerned with the behavior of the economy as a whole, with booms and recessions, the economy’s total output of goods and services and the growth of output, the rate of inflation and unemployment, the balance of payments and exchange rates.”

Definition of Macroeconomics by Different Authors:

So macroeconomics is a branch of economics that deals with the overall performance, structure, and behavior of the national or regional economy. It discusses overall indicators such as GDP, unemployment rate, and price index to understand the whole economic activity.

Macroeconomics develops models that explain the relationship between certain elements, such as national income, production, consumption, unemployment, inflation, savings, investment, international trade, and the international economy.

On the other hand, Microeconomics focuses primarily on the activities of a single entity, such as firms and consumers, and discusses how their behavior determines prices and quantities in a particular market.

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