This document provides an overview of a presentation on macroeconomics. It includes: 1. The names and roll numbers of the group members giving the presentation. 2. The topics to be discussed, including an introduction to macroeconomics, its objectives and basics, its development over time, applications, future, and limitations. 3. An introduction defining microeconomics as focused on individual actors, and macroeconomics as dealing with whole economy performance, structure, and behavior.

2. Presentation On
OF
Group-Infinity

3. Name of the Members Roll
• Md. Faruk Hossain 1407030
• Ahmed Istiaq Murad 1407076
• Konok Kumar Mondal 1407016
• Koushik Chakma 1407036
• Rawful Al Amin 1407052
• Md. Rafiqul Hasan Khan 1407054

4. TOPICS TO BE DISCUSSED
• Introduction of evaluation of
macroeconomics
• Objectives of the report
• Basics of macroeconomics
• Development of macroeconomics thought
• Application of macroeconomics
• Future of macroeconomics
• Limitation the study
• Conclusions

5. INTRODUCTION
• The evaluation of economics is as old as the evaluation of
human civilization. Economics is the science that concerns with
economies, from how societies produce goods and services, to
how they consume.
• From the very early stage of human civilization,
Macroeconomics has been a part of our society. It has changed
its shape and size many times but without Macroeconomics a
civilization cannot sustain or survive.
• Microeconomics is more focused on the choices made by
individual actors in the economy (individual consumers or
firms).
• Macroeconomics deals with the performance, structure and
behavior of the entire economy. With the help of
Macroeconomics we can gauge the financial circumstances and
take precautions that are necessary in adverse Macro
economic conditions.

7. Objectives of the Report
• Broad Objective
• To find out the contribution of societal and human force
behind the growth of Macroeconomics.
• Specific Objectives
• To Know the Evaluation of introduction of
Macroeconomics.
• To Know the contributions of the scholars behind the
development of Macroeconomics thought.
• To Know the applications of Macroeconomics.
• To Know the future trends of Macroeconomics.
• To Bring out the recommendations on the practical
utilizations of Macroeconomics in Bangladesh.

8. BASICS OF MACROECONOMICS
• The field of economics that
studies the behavior of the
aggregate economy is called
Macroeconomics.
• Macroeconomics (from the Greek
prefix makro- meaning "large"
and economics)
• deals with the performance,
structure, behavior, and
decision-making of an economy as
a whole, rather than individual
markets.

9. Fields of macroeconomics
Macroeconomists develop models that explain the
relationship between such factors:
• National income,
• Output,
• Consumption,
• Unemployment,
• Inflation,
• Savings,
• Investment,
• International trade and
• International finance.

11. Development of Macroeconomics
• The term ‘MACRO’ was first used in economics by RAGNER
FRISCH in 1933. But as a methodological approach to economic
problems, it originated with the Mercantilists in the 16th and
17th centuries.
• In the 18th century, the physiocrats adopted it in their Table
Economies to show the ‘circulation of wealth’ (Figure-2) among
the three classes represented by farmers, landowners and the
sterile class.
• MALTHUS, SISMONDI and MARX in the 19th century dealt
with macroeconomic problems. WALRAS, WICKSELL and
FISHER were the modern contributors to the development of
macroeconomic analysis before KEYNES.
• Certain economists, like CASSEL, MARSHALL, PIGOU,
ROBERTSON, HAYEK and HAWTREY, developed a theory of
money and general prices.
• However, credit goes to Keynes who finally developed a general
theory of income, output and employment in the wake of the
Great Depression.

12. DEVELOPMENT OF MACROECONOMICS
THOUGHT
• Ancient Economic Thought (Pre 500 AD)
• Economic Thoughts in the Middle Age (500-
1500AD)
• Mercantilism and international trade (16th
to 18th century)
• Period of Classical Economics (1776-1900)
• Period of Neoclassical Economics (1901-
1936)

15. Years of Great Deprassion (1929-1936)
• The Great Depression was a period of
unprecedented decline in economic
activity.
• It is generally agreed to have occurred
between 1929 and 1939.
• Although parts of the economy had
begun to recover by 1936, high
unemployment persisted until the
Second World War.

17. Background of Great Depression
• The 1920s witnessed an economic boom in the US
(typified by Ford Motor cars, which made a car within
the grasp of ordinary workers for the first time).
Industrial output expanded very rapidly.
• Sales were often promoted through buying on credit.
However, by early 1929, the steam had gone out of
the economy and output was beginning to fall.
• The stock market had boomed to record levels. Price
to earnings ratio was above historical averages.
• The US Agricultural sector had been in recession for
many more years.
• The UK economy had been experiencing deflation and
high unemployment mainly due to the cost of the First
World War and attempting to rejoin the Gold
standard at a pre-world war 1 rate.

18. Causes of Great Depressions
1. Stock Market Crash of October
1929
• During crash of September and October a
few firms posted disappointing results causing
share prices to fall. On October 28th (Black
Monday), the decline in prices turned into a
crash has share prices fell 13%.
• Tuesday there was another collapse in prices
known as 'Black Tuesday'.

19. 2.Bank Failures
In the first 10 months of 1930 alone, 744
US banks went bankrupt and savers lost
their savings.
3.Global Downturn
America had lent substantial amounts to
Europe and UK, to help rebuild after First
World War. Therefore, there was a
strong link between the US economy and
the rest of the world.

20. Different Views of the Great Depression
• Monetarists View:
Monetarists highlight the importance of a fall in the money
supply in between 1929 and 1932, the Federal Reserve
allowed the money supply (Measured by M2) to fall by a
third.
• Austrian View:
Austrian school of Economists such as HAYEK and LUDWIG
VON MISES place much of the blame on an unsustainable
credit boom in the 1920s. They point to the decision to
inflate the US economy to try and help the UK remain on
the Gold standard at a rate which was too high.

21. Keynesian View:
• KEYNES emphasized the importance of a fundamental
disequilibrium in real output. He saw the Great
Depression as evidence that the classical models of
economics were flawed.
• Classical economics assumed Real Output would
automatically return to equilibrium (full employment
levels); but the great depression showed this to be not
true.
• Keynes said the problem was lack of aggregate demand.
• KEYNES heavily criticized the UK government's decision
to try balance the budget in 1930 through higher taxes
and lower benefits. He said this only worsened the
situation.
• KEYNES also pointed to the paradox of thrift.

22. Keynesian Era (Post 1936AD)
• JOHN MAYNARD KEYNES, (5 June 1883 – 21 April 1946), a
British economist whose ideas fundamentally affected the theory
and practice of modern macroeconomics and the economic policies
of governments.
• He built & widely considered to be one of the most influential
economists of the 20th century and the founder of modern
macroeconomics.
• His ideas are the basis for the school of thought known as
Keynesian economics and its various offshoots.
• Modern macroeconomics can be said to have begun with Keynes
and the publication of his book ‘The General Theory of
Employment, Interest and Money’ in 1936.
• Keynes expanded on the concept of liquidity preferences and
built a general theory of how the economy worked.
• Keynes's theory was brought together both monetary and real
economic factors for the first time, explained unemployment, and
suggested policy achieving economic stability.

23. APPLICATION OF MACROECONOMICS
• Macroeconomics is the study of large factors that
affect a nation’s aggregate economy. Like government
interaction in a free market, changes in gross
domestic product, and inflation.
• Economists in this field generally look to solve
questions and problems through a review of these
aggregate factors.
• The applications of macroeconomics taxes,
regulations, and restrictions on using certain
resources or engaging in specific activities may be to
determine which government policies help a free
market and which do not.

24. APPLICATION OF MACROECONOMICS
• Studies on international economies can also help domestic
economists discover which portions of a free market may
or may not need regulation.
• Macroeconomics focuses on which areas provide more GDP
and what other areas may be a drag on the nation’s
economy. Applications for this use are typically on a
quarterly basis, with the goal to track business cycles.
• Constant growth means a strong economy, peaked GDP
represents a somewhat stagnant economy, and downward
trends in GDP indicators can represent a business cycle
decline.
• Inflation is often another important part of
microeconomics applications. Here, economists assess why
consumer or wholesale prices are constantly increasing.
• national unemployment
• monetary or fiscal policy
• price levels and
• national income.

25. OF MACROECONOMICS
• Macroeconomics has direct impact on the process of private
investment. Private investment which typically accounts for about
75 percent of total investment has been stagnating. The country
has a large domestic market owing to large population and
reasonably increasing per capita income.
• The key macroeconomic challenge facing Bangladesh is to
accelerate growth of GDP substantially in order to realize the
country's dream of achieving middle income status by 2021. To do
so, we would require enhancing both private and government
investment. The constraints to private investment starkly visible
in the areas of political instability, infrastructural deficiency,
poor governance and skill deficiency need to be addressed. There
is also an urgent need for increasing government investment in
Bangladesh.
• Raising revenue/GDP ratio including through improvement in the
efficiency of state-owned enterprises remains a major concern
for increasing government investment. The basket of export
goods as well as markets for exports needs to be diversified.

26. Limitation the Study
• Given limited time,
• Choice of research design,
• Statistical model constraints, or other
factors we faced greatly .
• Practical applications of the theory could
not be proven due to the non-availability
of resources.
• The people whom we managed to get to
take our survey may not truly be a
random sample, which is also a limitation.

27. CONCLUSIONS
• Given the enormous scale of government budgets and the impact
of economic policy on consumers and businesses, macroeconomics
clearly concerns itself with significant issues. Properly applied,
economic theories can offer illuminating insights on how
economies function and the long-term consequences of particular
policies and decisions.
• It is also important to understand the limitations of economic
theory. Theories are often created in a vacuum and lack certain
real-world details like taxation, regulation and transaction costs.
• Hence, by better understanding microeconomics and the
ramifications of microeconomic decisions, investors can get at
least a glimpse of the probable future and act accordingly with
confidence. Even with the limits of economic theory, it is
important and worthwhile to follow the major macroeconomic
indicators like GDP, inflation and unemployment.