Question

Write short note on Features of Macro-Economics.

Answer 1

Macroeconomists study aggregated indicators such as GDP, unemployment rates, national income, price indices, and the interrelations among the different sectors of the economy to better understand how the whole economy functions. They also develop models that explain the relationship between such factors as national income, output, consumption, unemployment, inflation, savings, investment, international trade, and international finance.

While macroeconomics is a broad field of study, there are two areas of research that are emblematic of the discipline: the attempt to understand the causes and consequences of short-run fluctuations in national income (the business cycle), and the attempt to understand the determinants of long-run economic growth (increases in national income). Macroeconomic models and their forecasts are used by governments to assist in the development and evaluation of economic policy.

Answer 2

Features of Macro-Economics are as follows:

• The concept of aggregate supply and demand, general price level, total output is the main concern of Macro-economy.
• As a whole, macro-economy studies economy,
• Stability, employment and growth of economy are goals of Macro-economy.
• The state of economy is measured by four variables- rate of unemployment, aggregate of income, the rate of interest and inflation.