ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Definition: Macroeconomics is the branch of economics that studies the behavior and performance of an economy as a whole. It focuses on the aggregate changes in the economy such as unemployment, growth rate, gross domestic product and inflation.

Detailed explanation-2: -Macroeconomics is the branch of economics that deals with the structure, performance, behavior, and decision-making of the whole, or aggregate, economy. The two main areas of macroeconomic research are long-term economic growth and shorter-term business cycles.

Detailed explanation-3: -It studies about the performance of the economy as a whole and not of any individual firm or business and express it in terms of aggregates. It focuses on the study of problems like inflation, unemployment, poverty, etc.

Detailed explanation-4: -An aggregate is a composite value measuring the result of economic activity. The main aggregate is GDP.

Detailed explanation-5: -Macroeconomics focuses on the performance of economies – changes in economic output, inflation, interest and foreign exchange rates, and the balance of payments. Poverty reduction, social equity, and sustainable growth are only possible with sound monetary and fiscal policies.