Results for: Macroeconomics

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What is macroeconomics?

Macroeconomic deals with the functioning of the economy as the whole. It is concerned with economy wide issues such as unemployment, inflation, and economics growth/developmen… (MORE)

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What is the limitations of macroeconomics?

Limitations of macro-economics The significances of the study of micro-economics remarkably increased after it was developed and popularised by J.M Keynes.But macro-economi… (MORE)

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What is micro and macroeconomics?

Micro economics is concerned with single markets such as the market for steel or cars or clothes and the supply and demand in that single market. Macroeconomics is much broade… (MORE)

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Macroeconomics is the study of?

my short and simple answer would be the " study of the economy as a hole" but ill break that down a little bit more for you... macroeconomics is a study focusing on the behavi… (MORE)

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Microeconomics and macroeconomics?

Microeconomics is the study of how households and firms make decisions and how they interact in markets. Microeconomics explores the patterns of supply and demand that determi… (MORE)

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What limitation does macroeconomics have?

Fallacy of Composition . In Macro economic analysis the "fallacy of composition" is involved, i.e. aggregate economic behaviour is the sum total of the economy of individua…l activities. But what is true of individuals is not necessarily true to the fiscal entirely. For instance, savings are a private virtue but a public vice. If total savings in the economy increases, they may initiate a depression unless they are invested. Again, if an individual depositor withdraws his money from the bank, there is no risk. But if all depositors simultaneously do this, there will be a run on the banks and the banking system will be affected adversely. The main defect in macro analysis is that it regards the aggregates as homogenous without caring about their internal composition and structure. The average wage in a nation is the sum total of wages in all professions, i.e. wages of clerks, typists, teachers, nurses etc. But the volume of aggregate employment depends on the relative structure of wages rather than on the average wage. If, for instance, wages of nurses increase but of typist rises much aggregate employment would increase. . To Regard the Aggregates as Homogenous The aggregate variables which form the economic system may not be of much significance. For instance, the national income of a country is the total of all individual income. A hike in national income does not mean that individual incomes have risen. The increase in national income might be the result of the increase in the incomes of a few rich people in the nation. Thus a rise in the national income of this type has little significance from the point of view of the community. . Aggregate Variables may not be Important Necessarily An indiscriminate and uncritical use of macro economics in analysing the complexities of the real world can frequently be misleading. For instance, if the policy measures needed to achieve and maintain full employment in the economy are applied to structural redundancy in individual firms and industries, they become irrelevant. Likewise, measures aimed at controlling general prices cannot be applied with much advantage for controlling prices of individual products. . Indiscriminate Use of Macro Economics Misleading The measurement of macro economics concepts involves a number of statistical and conceptual complexities. These problems relate to the aggregation of micro economic variables. If individual units are almost similar, aggregation does not present much difficulty. But if micro economic variables relate to dissimilar individual units, their aggregation into one aggregation into one macro economic variable may be incorrect and hazardous. . Statistical and Conceptual Difficulties (MORE)

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What is the limitation of macroeconomics?

The thing that limits our understanding of macroeconomics is the inability to take a sufficiently distant stance or perspective, in order avoid confusion from the microeconomi… (MORE)

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What is the comparison of macroeconomics and macroeconomics?

The comparison of macroeconomics and macroeconomics is that, it looks at the economy as a whole by considering the aggregates such as; GDP, depression, international trade and… (MORE)

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What are macroeconomic drivers?

Factors that drive the economy (employment, interest rates, inflation, consumer spending etc) as compared to factors that drive an industry or even a company (microeconomic)

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In Macroeconomics

What is Macroeconomic?

Macroeconomic is a a branch of economics that deals with theperformance, structure, behavior and decision making of an economyas a whole instead of the individual markets.