What is macro economics?

Macroeconomics is a branch of economics dealing with the

performance, structure, behavior, and decision-making of the entire economy. This includes a national, regional, or global economy. With microeconomics, macroeconomics is one of the two most general fields in economics. Macroeconomists study aggregated indicators such as GDP, unemployment rates, and price indices to understand how the whole economy functions. Macroeconomists develop models that explain the relationship between such factors as national income, output, consumption, unemployment, inflation, savings, investment, international trade and international finance. In contrast, microeconomics is primarily focused on the actions of individual agents, such as firms and consumers, and how their behavior determines prices and quantities in specific markets.

Father of Macroeconomics.
John Maynard Keynes was born on 5th June 1883 at

6 Harvey Road, Cambridge. He was a British economist whose ideas have profoundly affected the theory and practice of modern macroeconomics, as well as the economic policies of governments. He greatly refined earlier work on the causes of business cycles, and advocated the use of fiscal and monetary measures to mitigate the adverse effects of economic recessions and depressions.

Father of Macroeconomics.
In the 1930s, Keynes spearheaded a revolution in economic

thinking, overturning the older ideas of neoclassical economics that held that free markets would in the short to medium term automatically provide full employment, as long as workers were flexible in their wage demands. Keynes instead argued that aggregate demand determined the overall level of economic activity, and that inadequate aggregate demand could lead to prolonged periods of high unemployment. Following the outbreak of World War II, Keynes's ideas concerning economic policy were adopted by leading Western economies. During the 1950s and 1960s, the success of Keynesian economics resulted in almost all capitalist governments adopting its policy recommendations, promoting the cause of social liberalism.

Father of Macroeconomics.
Keynes is widely considered to be the father of modern

macroeconomics, and by various commentators such as economist John Sloman, the most influential economist of the 20th century. In 1999, Time magazine included Keynes in their list of the 100 most important and influential people of the 20th century, commenting that; "His radical idea that governments should spend money they don't have may have saved capitalism". In addition to being an economist, Keynes was also a civil servant, a director of the Bank of England, a patron of the arts and an art collector, a part of the Bloomsbury Group of intellectuals, an advisor to several charitable trusts, a writer, a private investor, and a farmer.

Importance of macroeconomics.
The theoretical and practical importance of macro economics is briefly discussed as:

It is helpful in understanding the functioning of macro

economics system. It explains the factors which determine the level of national income and employment in as economic. It explains the circular flow of national income in an economy. It explains the problem of unemployment which is a main problem of developing countries. It explains the various aspects of international trade such as terms of trade balance of payments, foreign exchange etc. It studies the causes of fluctuations in the business cycle and to formulate the policies to control inflation and deflation.

Macroeconomics Objectives & their impact on Business Activity:

Full Employment :- lowest rate of unemployment attainable without accelerating inflation
Price Stability :- keeping inflation down (monetary policy, fiscal policy)

Economic Growth :- self explanatory.

External policy: - Current account, exchange rate etc. Equitable distribution of income and wealth :- a fair share of the national 'cake', more equitable than would be in the case of an entirely free market. Increasing Productivity : more output per unit of labour per hour. Also, since labor is but one of many inputs to produce goods and services, it could also be described as output per unit of factor inputs per hour.

The career opportunities.

Economics as a career choice provides many employment

opportunities. Economists can be found working in all sectors of the economy, from government, banking, and private industry to international organizations and nonprofit institutions. Employment as an economist at the state and local level allows economists to apply their skills in areas such as forecasting growth, developing training programs for displaced workers, and aiding in establishing economic development plans for the regional economy. Business economists typically provide firms with forecasts of future economic conditions, which are in turn used to help guide the planning and budgeting decisions firms make.

Thats all about my topic.

Thank you all.

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