Scope of Macro Economics

Scope of Macro Economics The study of macro economics has wide scope and it covers the major areas as follows  National Income: Measurement of national income and its composition by sectors are the basic aspects of macroeconomic analysis. The trends in National Income and its composition provide a long term understanding of the growth process of an economy.  Inflation: Inflation refers to steady increase in general price level. Estimating the general price level the economy as a whole.

In other words, macro economics deals with aggregates such as national income, employment, output etc. 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. Importance of Macro Economics The importance and the need for introducing a macro outlook of an economy are given below: