Meaning of Macro Economics
The word ‘Macro’ is derived from the Greek word ‘Makros’ meaning ‘large’. Hence, Macro Economics is the study of the economy as a whole. In other words, macro economics deals with aggregates such as national income, employment and output. Macro Economics is also known as ‘Income Theory’.
The subject matters covered in Macro Economics are the areas such as employment, national income, inflation, business cycle, poverty, inequality, disparity, investment and saving, capital formation, infrastructure development, international trade, balance of trade and balance of payments, exchange rate and economic growth.