Macro Economics and its Limitations
Macro Economics is the study of
collective data of our economics. In macro economics, we analysis data as a
whole like – total employment, national income, GDP, total consumption, total
demand and supply etc. macro economic analysis economics as a units, also
analysis the inter relationship of different sub-units in a economics.
In macro economics, we not discuss
on a single units but treats whole economic as a single units. It draws a big
picture of the economics and also draw inter relationship of different
sub-units. It covers all the issue or problems of an economy and also tries to
find out a correlation with others.
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| knowledge about macro economics |
Limitations of a Macro Economics –
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Behaviour
issue – macro economics is analysis economics as a whole but this thing is not
applicable for all the times. Some things is good for an individual market but
not for all the market. For example – some-one is drawing amount from bank then
there is no issue but if all persons are doing the same activity then it is a
big issue for bank.
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Macro-economic,
we assume the entire individual group as a same units or sub-units. For example
like total income or average income of a particular group or units.
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In
macro economics, some time aggregate variables are not important like if there
is a increase in national income so it is not possible that there is a increase
in all personal income.
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Create
conflicts – if we form any policy on the behalf of macro-economic but that is
not suitable for micro economics or individual units.
