Economics is the study of how individuals, societies and nations use limited resources to meet their unlimited needs. The basic issues it studies include scarcity, choice and allocation of resources. To study these important issues of economics, economics is divided into two parts, microeconomics and macroeconomics. Vyashti is a Nepali translation of the English word Micro. The English word Micro is derived from the Greek word Mikros which means subtle or small. So individual economics studies individual or small units of the economy. Similarly, the aggregate word is a Nepali translation of the English word macro. The English word macro is derived from the Greek word makros which means big or big. So macroeconomics studies the overall unit of economics. The term micro ₹ macro was first used in economics in 1933 by Prof. Ragnar Frisch did. Since then, these two terms have been widely used and are now a major part of economics. Therefore, this chapter discusses the meaning, importance, and limitations of macroeconomics, the relationship between individual and macroeconomics, and the differences between neo-classicalism and neo-Keynesianism, and finally the various concepts of macroeconomics.
Meaning of microeconomics
The branch of economics that studies the whole economy or overall economic behavior is called macroeconomics. In other words, macroeconomics is the branch of economics that studies the total variables of the economy such as national income, price level, employment level, economic growth rate, etc. Hence it is also called aggregative economics. Macroeconomics is also called macroeconomics.
Macroeconomics deals with the study of aggregate units such as national income, total consumption, total savings, total investment, etc. It analyzes how the general price level is determined and how resources and resources are distributed throughout the economic system.
K.E. According to Boulding, "macroeconomics is concerned with national production, not with individual units, with aggregate units, not with individual income, not with national income, not with individual value, not with price level, not with individual production."
(Macroeconomics is the study of behavior of the economy as a whole. It examines the overall level of national output, employment, prices and foreign trade.)
Since macroeconomics studies the whole economy in large chunks, it is also called the lumping method. It explains how national income and employment are determined. It also analyzes the factors that cause fluctuations in the level of national income and employment. In addition, macroeconomics explains how economic growth or national income grows in any economy. As macroeconomics studies the determinants of national income and employment growth, it is also called the Theory of Income and Employment. Development of Macroeconomics J.M. Keynes The General Theory of Employment, Interest and Money "is also called Keynesian Economics since its publication in 1936.
FEATUREOFMACROECONOMICS
The characteristics of macroeconomics are as follows:
It is a study of aggregate or aggregate economic units covering the overall economy.
It studies the overall economic units like national income, inflation, unemployment, trade cycle etc.
It has to do with the behavior of the economy as a whole.
It is economical in terms of fixed relative value and distribution of limited resource
As it is used in policy making, it works to tell the right and wrong and give advice. Therefore, it is also called normative science or policy science. The main tools of its analysis are fiscal policy and monetary policy
(Monetary policy). Fiscal policy is concerned with government spending and revenue, while monetary policy is concerned with interest rates and money supply.It is also called the principle of income and employment.Its main purpose is to determine national income, employment and general price levels and to analyze the rate of change in them. The key variables to be studied are national income, total consumption, total expenditure, total investment, It was in 1936 that J.M. Book of Keynes | Since the publication of "The General Theory of Employment, Interest and Money", it is relatively
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