Ayussh Sanghi is teaching live on Unacademy Plus
th OCE Ocean INTRODUCTION TO MACROECUNOMIC South
PART 1 by ayussh sanghi
"The ideas of economists and political philosophers, both when they are right and when they are wrong are more powerful than is commonly understood Indeed, the world is ruled by little else Practical men, who believe themselves to be quite exempt from any intellectual influences, are usually slaves of some defunct economist." John Maynard Keynes
INTRODUCTION TO MACROECONOMICS WHAT IS ECONOMICS? Alfred Marsh defined it as "Economics is the study of humans in the ordinary business of life. It enquires how he gets his income and how he uses it. Thus, it is on the one side, the study of wealth, and on the other and more important side, a part of the study of man." Basically, it is the study of people and choices. You already know that Economics is broadly classified into two parts; Microeconomics and Macroeconomics.
INTRODUCTION TO MACROECONOMICS WHAT IS MICROECONOMICS? ECONOMIC AGENTS INCLUDE THOSE INDIVIDUALS OR INSTITUTIONS WHICH TAKE ECONOMIC DECISIONS As clear from the name itself, Microeconomics is the study of individual 'economic agents' and the nature of motivations that drive them. The term "micro" denotes small agents, say an individual consumer who wants to decide whether to buy a chocolate don and more ut or a producer trying to manufacture more costs.
INTRODUCTION TO MACROECONOMICS WHAT IS MACROECONOMICS? Macroeconomics, on the other hand tries to address situations facing the economy as a whole In other words, it is the study of the performance and structure of the whole economy rather than individual markets.
INTRODUCTION TO MACROECONOMICS MICROECONOMICS V MACROECONOMICS Microeconomics Macroeconomics Microeconomics is the study of economics at the individual or business level; how individual people or businesses behave given the scarcity and government intervention Macroeconomics is the study of the performance and structure of the whole economy rather than individual markets Meaning Subject of Study Individual Economic Variables Aggregate Economic Variables Covers various issues like demand, supply, product pricing, factor pricing, production, consumption, economic welfare, etc. Covers various issues like, national income, general price level, distribution, employment, money etc. Scope Helpful in determining the prices of a product along with the prices of factors of production (land, resolves the major problems of the economy like labor, capital, entrepreneur etc.) within the economy Maintains stability in the general price level and Importance inflation, deflation, reflation, unemployment and poverty as a whole
MICROECONOMICS V MACROECONOMICS MICROECONOMICS IS ABOUT THE MONEY YOU DON'T HAVE AND MACROECONOMICS IS ABOUT MONEY THE GOVERNMENT IS OUT OF P.J. Rourke