Macroeconomics | Meaning of Macroeconomic | Components of Macroeconomic. | Economics

Macroeconomics is a part of economics that looks at how the entire economy functions, including markets, companies, consumers, and government actions. It focuses on big-picture issues like inflation, overall price levels, economic growth rates, national income, GDP, and shifts in unemployment rates.

Meaning:

 Macroeconomics derived from Greek word "makros" which means large. Hence macroeconomics deals with the study of whole economy.

     Components of macroeconomics 

i) Equilibrium in the economy

            ->       AD=AS

ii) Disequilibrium in the economy

           ->        AD≠AS

                       i        AD>AS

                       ii      AD<AS

iii) Correction of disequilibrium 

→Monetary policy

→Fiscal policy 

→Exchange rate policy