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Macroeconomics is the study of aggregates covering the entire economy like total employment, national income, national output, total investment, total savings, total consumption, aggregate supply, aggregate demand, general price level, etc.
Concepts of Macro Economics.
- National Income: It is the aggregate monetary value of all final goods and services produced in a country during a year.
- Saving: It is that part of income that is not spent currently as consumption in order to satisfy future needs.
- Investment: It means the creation of capital assets through mobilisation of savings, e.g. investment in machinery, equipment, etc.
- Trade Cycles: Fluctuations in business due to inflation and deflation in the economy are called trade cycles.
- Economic Growth: It means an increase in the real income of the country, over a larger period of time It is a quantitative concept.
- Economic Development: It means economic growth along with progressive changes in the well-being of the people of the country. It is a qualitative concept.
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