Macroeconomics explains economic processes that deal with aggregates or large groups, such as levels of unemployment, national income, and price levels. Knowledge of these aggregates is important for comprehensive economic planning and can only be understood through macroeconomic analysis. Macroeconomics also plays a role in developing the principles of microeconomics, as microeconomic laws cannot be formulated without studying aggregates.

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2.  Macroeconomics (Greek makro = ‘big’)
explains economic processes that
concern aggregates.
 Aggregate - large number of economic
subjects that share some common
features.
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3.  Knowledge of aggregates such as
composition of national income , level of
unemployment etc. important.
 Knowledge important for comprehensive
economic planning and is possible
through study of macroecomomics.
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4.  Study of national income enables to
know economic conditions of a country.
 While making economic plan there must
be full knowledge of national income.
 Knowledge of national income only
possible through macro analysis.
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5.  Inflation – rise in price level.
 Deflation – fall in price level.
 To control inflation and deflation of price
levels economists rely upon study of
macroeconomics.
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6.  Macroeconomics plays important role in
constructing principles of
microeconomics.
 No law of microeconomics can be
formulated without study of aggregates.
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