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1. Macroeconomics
Macroeconomics is defined as that branch of economic
activities including economic issues and economic problems
at the same level of economic as a whole.
It focuses on macroeconomic variable like aggregate demand,
aggregate supply, gernal price level, national income and
output etc.
Looking at the orign of the term “MACRO”, it is drived from
the Greek word “Macros” which in that language means
large. Thus microeconomic means economics of whole
dimension, refering to economy as a whole .

2. SHORTCUTS
 Macroeconomics
 Definations of Microeconomics
 Microeconomics is the study of aggregates but only at
the ...

3. Definations of Microeconomics
According to Shapiro, “Microeconomic deals with
the functioning of the economy as a whole”
In the words of Boulding, “ Microeconomics
theory is that part of economics which studies the
overall averages and aggregates of the system”
In the words of M.H. Spencer, “Microeconomics
is with the economy as a whole or large segment of it.

4. Scope of Macroeconomics
Business Cycle.
Theory of International
Trade.
Budgetary Defict and
Fiscal Policy.
Interest Rate and
Monetary Policies.
Theory of national
income.
Theory of Employment.
Theory of Money.
Theory of General Price
Level.
Economic Growth and
Development.

5. Micoeconomics

6. Microeconomics

7. Microeconomics Macroeconomics
 Microeconomics studies
economic issues relating to a
single economic unit like firms
or a small group of economic
units
Microeconomics focuses on the
study of a principles , problems
and policies relating to
optimum allocation of
resources.
 Macroeconomics studies
economic issues relating to all
firms in an economy.
Macroeconomics fouses on the
study of principal, problems
and policies relating
eovemployment status and
growth of the resources in the
economy
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