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Macroeconomics analyzes the aggregate behavior of whole economies. It studies large-scale factors like total output, employment, and prices. The three main topics in macroeconomics are output, unemployment, and inflation. Output is typically measured by GDP, which represents the total value of final goods and services produced. Unemployment occurs when people wanting jobs cannot find work and leads to losses in potential output and income. Macroeconomists seek to understand these factors and their impacts on national economies.

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340 views7 pages

Project Report On

Macroeconomics analyzes the aggregate behavior of whole economies. It studies large-scale factors like total output, employment, and prices. The three main topics in macroeconomics are output, unemployment, and inflation. Output is typically measured by GDP, which represents the total value of final goods and services produced. Unemployment occurs when people wanting jobs cannot find work and leads to losses in potential output and income. Macroeconomists seek to understand these factors and their impacts on national economies.

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jyoti90
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PROJECT REPORT ON

MACROECONOMIC S

What Is Macroeconomics?
Macro means large or aggregate(total).

"Macroeconomics is the branch of economics concerned with aggregate behavior of the economy as a whole.
Macroeconomics analyses the behaviour of the whole economic system in totality or entirely. In other words, macroeconomics studies the behaviour of the large aggregates such as total employment, the national product or income, the general price level of the economy. Therefore, macroeconomics is also known as aggregate economics. More specifically, it is a study of national economies and the determination of national income and national output.

Basic macroeconomic concepts


Macroeconomics encompasses a variety of concepts and variables, but three central topics for macroeconomic research are: 1. Output, 2. Unemployment, 3. Inflation. Outside of macroeconomic theory, these topics are also extremely important to all economic agents including workers, consumers, and producers.

Output and income


National output is the total value of everything a country produces in a given time period. Everything that is produced and sold generates income. Everything that is produced and sold generates income. Macroeconomic output is usually measured by Gross Domestic Product (GDP) or one of the other national accounts. Gross Domestic Product (GDP) is defined as the value of all final goods and services produced in the economy within a given period of time. The aggregate value of the output, expenditure or income of an economy is called its GDP.

Economists interested in long-run increases in output study economic growth. Advances in technology, increases in machinery and other capital, and better education and human capital all lead to increased economic output overtime. However, output does not always increase consistently. Business cycles can cause short-term drops in output called recessions. Economists look for macroeconomic policies that prevent economies from slipping into recessions and that lead to faster long-term growth. National income can be defined as the aggregate money value of the annual flow of final goods and services in the national economy. National income tries to measure the value of output in the economy, the value of incomes earned in the economy and the value of goods produced in the economy.

Unemployment
The amount of unemployment in an economy is measured by the unemployment rate, the percentage of workers without jobs in the labor force. The labor force only includes workers actively looking for jobs. For economy as a whole, unemployment reduces the output of goods and services that could otherwise have been produced by unemployed labor force. The economic loss caused by unemployment can be measured as a loss in aggregate supply (total output) or aggregate demand (total income), more specifically, the difference of potential GDP minus actual GDP. Macroeconomists have come to agree that when the economy has witnessed growth from period to period, which is indicated in the GDP growth rate, unemployment levels tend to be low.

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