Features of macro economics
- Marco economics is that part of economics where we study economy in its totality .i.e we study aggregate economic variables of an economy like income , consumption , unemployment etc.
- It deals with developing various models explaining relationships between different macro economic variables such as national output , aggregate demand , aggregate supply, price level etc.
- It sees an economy as a combination of four sectors namely households , firms , government and external sector and examines various interlinkages that may exist between these sectors.
- It deals with studying determinants of long run economic growth as well as causes for short term fluctuations that constitute the business cycle.
- It is also concerned with analysing various monetary and fiscal policies and aids govt to form appropriate economic policies.