this is a presentation on the scope and objectives of macro economics

1. SCOPE AND
OBJECTIVES OF
MACRO
ECONOMICS
PRESENTED BY,
SHRUTHIKA
NAMPALLY

2. INTRODUCTION OF
MACROECONOMICS :
• 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.

3. SCOPE OF
MACROECONOMICS

4. • Macroeconomics studies the concept of national income,
it’s methods and measurements.
• Macroeconomics studies the problems related to
employment and unemployment.
• Macroeconomics studies functions of money and theories
relating to it. Banks and other financial institutions are
also a part of its study.

5. SCOPE OF
MACROECONOMICS:
1. National income.
2. Employement.
3. Money.
4. Price level.
5. Economic growth.

6. • THEORY OF NATIONAL INCOME : Theory of
determination of national income is concerned with
finding out the equilibrium level of national income.
• THEORY OF EMPLOYMENT : Employment here means
wage labour, the hire of labour for a sum of money,
and not merely occupation or self-employement. A
theory of employment is then a theory of the decision
of employers to hire labour and of employers to offer
their services.
• THEORY OF MONEY : Theory of money States that
money supply and price levelnin an economy are in
direct proportion to one another. When there is a
change in the supply of money, there is a proportional
change in the price level and vice-versa.
• THEORY OF GENERAL PRICE LEVEL : An index that
measures the change in price of goods in an economy
one time and hence the purchasing power of the
currency of the country.
• THEORY OF ECONOMIC GROWTH : Economic growth
as the increase in the inflation adjusted market value

7. OBJECTIVES OF
MACROECONOMICS

8. INTRODUCTION
• Broadly, the objectives of
macroeconomics policies is to
maximize the level of national
income, providing economic
growth to raise the utility and
standard of living of
participants in the economy.
• There are also a number of
secondary objectives which are
held to lead to the
maximization of income over
the long run.

9. SUSTAINABILITY
• A rate of growth
which allows an
increase in living
standards without
undue structural and
environmental
difficulties.

10. FULL EMPLOYMENT
•Where those who are able
and willing to have a job can
get one, given that there will
be a certain amount of
frictional, seasonal and
structural unemployment.

11. PRICE STABILITY
• When price remain largely stable, and
there is not repaid inflation or deflation.
• Price stability is not necessarily the same
as zero inflation, but instead steady Levels
of Low-moderate inflation is often regard
as ideal.
• However, inflation is a good measure of
price stability.
• Zero inflation is often undesirable in an
economy.

12. EXTERNAL BALANCE
• Equilibrium in the
balance of
payments without
the use of artificial
constraints.
•That is, exports
roughly equal to

13. INCREASING
PRODUCTIVITY
•More output per unit of labor
per hour.
•Also, since labor is one of
many inputs to produce goods
and services, it could also be
described as output per unit of
factor inputs per hour.