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Dilfraz Singh, Lovely Professional University Unit-1: Introduction of Macroeconomics

Unit-1: Introduction of Macroeconomics Notes

Contents
Objectives
Introduction
1.1 What is Macroeconomics?
1.2 What do we Study in Macroeconomics
1.3 Major Macroeconomic Issues
1.4 Macroeconomic Targets and Instruments
1.5 Summary
1.6 Keywords
1.7 Review Questions
1.8 Further Readings

Objectives

After the study of this unit, student will be able to:
y To know macroeconomics,
y To know macroeconomics targets and instruments.

Introduction
We can know the meaning of only after the origin of macro word. It has been taken from Greek word
'Macros, it means is that language is “Large ‘’. Hence macroseconomics means to analyze whole
economy at wide level.

1.1 What is Macroeconomics?

Macroeconomics is not a new term for students in fact, you have been better understand the difference
of terms “Micro” and “Macro” at senior secondary level. Repeating this difference, it can be said that
in microeconomics, economic problems is studied at individual level (as a – an individual family, an
individual firm, an individual industry an individual market, )where as in macroeconomic economic
problems are studied at the level of economy as a whole.
y According to Shapiro – “Macro economics deals with the functioning of the economy as a
whole.
y Ackley Gardner‘s words - “Macroeconomics concerns with such variables as the aggregate
volume of the output of on economy, with the extent to which its resources are employed,
with the size of national income and with the general prize level.”
y In words of M.H. Spence – “Macroeconomics is concerned with the economy as a whole or
large segments of it . in macroeconomics attention is focussed on such problems as the level

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