Meaning and Concept of Macroeconomics || Nature and Scope of Macro

Meaning and Concept of Macroeconomics are described below:

Introduction
The term Macro is derived from the Greek word “makros” which means “large”. Thus, macroeconomics deals with the study of aggregate components of the economy such as national income, general price level, aggregate expenditure, aggregate supply, savings, investment, etc. It doesn’t deal with individual quantities of the economy. It deals with how national income, national product, total employment, etc. are determined.
The main objective of macroeconomics is to explain the principles, problems, and policies related to full employment and the growth of resources in the economy.

Scope Of Macroeconomics:

fig: Scope of Macroeconomics

1. Theory of Income and Employment:
The main objective of macroeconomics is to study various issues related to employment and the growth of resources. Macroeconomics studies the concept of national income, its different elements, method of the measurement and scope of accounting.
2. Theory of Distribution:
Macroeconomics studies the determinants of income distribution. It also studies the comparative share of different classes of people in the national income is determined and distributed.
3. Theory of Money and Price Level:
Macroeconomics explains the nature, cause, and effect of inflationary and deflationary in the economy. Changes in the demand and supply of money affect the level of employment.
4. Theory of International Trade and Business Fluctuations:
It deals with the nature, causes, impacts, and implications of fluctuations in macroeconomic variables like level of employment, general price level, income, and output.
5. Theory of Economic Growth:
It is on the basis of macroeconomics that the resources and capabilities of an economy are evaluated. Plans for the overall increase in national income, productivity, employment are framed and executed so as to raise the level of financial development of the economy as a whole.
6. Macroeconomic Policies:
Macroeconomics studies the nature and extends of the effectiveness of macroeconomic policies on the national economy. Generally, it studies the demand-side policies and supply-side policy.