What you know about Macro Economics

Macro Economics – its limitation

In macro economics, we study the economics as a whole. We raise big issues which have collectively important for our economics. In it, we study the aggregates or average function witch have a close relationship with economics. For example like total employment, national income, total production, total saving and total demand or supply etc.

In macro economics, we study these topics as a whole and their ups & down, also inter-relationship with each other. In other words, we call the macro economics – theory of income and employment or income analysis. Macro economics have close relation with unemployment, inflation & deflation, international trade and development.

Macro Economics - It's Limitation

Limitation of Macro Economics -

ü  Fallacy structure – in macro economics, we study the aggregate variables or as a total but some time their structure becomes fallacy. For example of one person increase saving, it is good habit but if whole economics doing the same, it is not good for economics.

ü  Importance of total or aggregate variables – it is possible that some time total or aggregate variables are not important. For example if national income increases it is not possible that income increases at individual level also. It is possible that some individual face a decrease in their income or there is an increase in income of rich person.

ü  Assume total variables as homogeneous – macro economics assume that total variables as a homogeneous. Macro economics not go through or understand their structure. For example macro economics assume that all the variables as same like income of Clark, teacher or doctor etc.

ü  Statistical difficulties – macro economics always study total variables but many time it is not possible to accumulate such variables data at micro-level. 

Macro Economics and its Limitations macro economics ki badha

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.    

knowledge about macro economics

Limitations of a Macro Economics –

ü  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.

ü  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.

ü  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.

ü  Create conflicts – if we form any policy on the behalf of macro-economic but that is not suitable for micro economics or individual units.