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Introduction to Macroeconomics
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This lesson gives the learners a brief idea about the basics of Macroeconomics.

Arpita Prakash
YouTuber NCERTs series initiator at Unacademy 'Educator of the Month' for Feb'19 CBSE 0.1% Merit Certificate holder in Mathematics

Unacademy user
can i get pdf format of this course
Thank you very much ma'am. Splendid as always. Waiting forward for the remaining lessons.
Thank you very much ma'am
  1. Macroeconomics- o Understanding situations facing the economy as a whole o Attention on aggregate measures like total output, employment and aggregate price level o To know how the levels of these aggregate measures are determined and how their level o Decision makers ( or 'players') in macroeconomics- State itself or statutory bodies like o Decisions are for welfare of country and it's people as a whole and not aimed at serving o Some important questions changes over time RBI, SEBI and similar institutions individual self interests " Level of total output in Economy Determination of total output- how? -Growth of total output over time- how? Reasons behind unemployment of resources ( eg Labour) - Reasons for price rise Microeconomics (study of different markets) and Macroeconomics (study of behaviour of aggregate or macro measures of performance of economy)

  2. MACROECONOMICS On whole, it appears that output levels of all goods and services in the economy have a tendency to move together. oEg: Growth in output of food grain is generally accompanied by a rise in output level of industrial goods o Output of different kinds of goods tend to rise or fall simultaneously even within category of industrial goods o Employment level in different production units going up or down together . Because of close relationship of aggregate output level, price level or employment level, in the different production units of an economy; easier is the task of analysing the entire economy The above mentioned variables aren't dealt at individual ( disaggregated ) levels rather a single good is taken as representative of all goods and services produced within the economy o It's production level will correspond to average production level of all goods and services o It's price or employment level will reflect the general price and employment level of economy . Simplification of analysis of how the country's total production and level of employment are related to attributes, called 'variables' like prices, rate of interest, wage rates, profits and so on ; by focusing on a single imaginary commodity and what happens to it

  3. However for certain purposes, interdependence of (or rivalry between) two sectors of Economy (Eg- Agriculture and Industry) or the relationships between sectors (like household sector, business sector and government in a democratic set up) help us understand some things happening to country's economy much better than only by looking at economy as a whole e Sometimes, also a need to overlook some vital distinctive characteristics of individual goods ( For eg- by treating a single category of labour as a representative of all kinds of labours, we may be unable to distinguish the labour of the manager of a firm from the labour of accountant of firm) o Hence, in many cases, instead of a single representative category of good (or labour etc ), handful of different kinds of goods might be taken. o For example- three general kinds of commodities may be taken as a representative of all commodities being produced within the economy agricultural goods, industrial gods and serviceS * Emerged as a separate branch of economics, after British economist John Maynard Keynes published his book " The General Theory of Employment, Interest and Money ' in 1936 . Economy is mostly seen as a combination of four sectors- households, firms, government and external sector