fallacy of composition macroeconomics |scope of macroeconomics| nature of macroeconomics
What do you understand by macro economics? Explain its characteristics and limitations?
What is the meaning of macroeconomics?
According to Professor Boulding, macroeconomics is also called macro economics. In macroeconomics, individual quantities are not studied but the sum of such quantities is studied. It is not related to individual income but to national income and not to individual prices but studies the general price level. Studies not individual production but national production. In macroeconomics, not only the individual is studied but his entire life is studied.
Who is the father of macroeconomics
The word micro was first used in the University of Oslo. Professor Regnar Fischer did it in the year 1933. The origin of the word macro is the Greek word Makros. from toIt is Kala which literally means big. Which in simple language is called Samast, Kul, Samutra, Samashti etc. Macro economics does not study any one part but studies the average of the entire organization or the group of the entire economy. Under comprehensive, the entire income, the entire Production studies total savings and total employment, hence it is called macroeconomics or aggregate economics.
Definition of aggregate
According to Professor Boulding - Macroeconomics Economics studies that part in which it studies a large group of the economy and makes efforts to define this group in simple and useful language.
According to Professor J. L. Hanson
This is the branch of economics in which comprehensive consideration is given to the mutual relations regarding macro aggregates such as employment, total savings, national income etc.
What is another name for macroeconomics?
1. Macro economics
2. Macroeconomics
3. Collective Economics
Features of macroeconomics
Write two characteristics of macroeconomics
Write any four characteristics of macroeconomics
1. Comprehensive approach
The approach of macroeconomics is very broad, it does not give importance to any small part, rather it helps in finding solutions to national and international problems, rather it gives more importance to the dynamic system.
2. Attention to collective interests
Macroeconomics gives more importance to the group rather than the individual and helps in improving the level of economic planning in developing countries. Planning takes into account the entire economy.
3. Dependency
In macroeconomics, change in any one part has no impact, whereas in microeconomics it has great importance. In macroeconomics, when one part changes, the overall general level also changes.
4. Macro Analysis
Macroeconomics also studies the effect of monetary and revenue policies of the government and holds an important place in analyzing it more comprehensively.
What is macroeconomics? Discuss its importance and limitations.
Explain the limitations of macroeconomics
1. Fallacy of structure
There is a misconception about the structure of analysis in macroeconomics, that is, economic behavior is individual or aggregate, but it is not necessary that this is true for an individual or it is true for the entire economy as well.
2. Disregard for individual differences
Macroeconomics ignores individual differences because even if prices remain constant, prices of food grains may rise and people who are poor may face hardship. Under macroeconomics, we analyze the whole and the artificial nature of its components. I don't pay any attention.
3. Ignoring interpersonal relationships in the group
According to Professor Boarding, creating a group which has no substance, if a study is done on the basis of such a group which has no meaning, then the conclusion will be that it is an inaccurate and confusing study.
4. Difficulties in dividing the officers involved in the total.
In practice, the importance of different types of units included in the whole does not matter, some of them may be less important or some may be more important. If we give equal importance to all, then the conclusion will be wrong.
5. Difficulties in measuring the composite
There is a problem in measuring a group or group of goods in the same number or quantity. How to clarify that if we want to know how much production was done in an economy in a particular year, then we cannot physically measure the goods and services. Because of such problems one has to resort to criteria.
