Introduction to Macro Economics; Brief Information!

The word macro is derived from the Greek word ‘Makros’, which means large or aggregate i.e. Total. Hence, Macro economics is the study of aggregates covering the entire economy such as total employment, national income, total consumption, aggregate supply, total saving, total investment, general price level and etc.

Macro-Economics is also known as theory of income and employment or simply as income analysis. Macro approach to study is comparatively new and is of a recent origin. Though it is a modern approach, this does not mean that it did not exist in past. It is true that macro economics did not exist in past as separate branch of economics.

Prof. J. L. Hansen Says that “Macro-Economics is branch od economics which considers the relationship between large aggregates such as the volume of employment, total amount of savings, investments, national income, etc.” Macro-Economics studies the changes in economic variables and analyses dynamic nature of the economy.