MACRO ECONOMICS

GUESS PAPERS ARE AVAILABLE FOR MA-ECONOMICS EXTERNAL KU STUDENTS.

Macroeconomics deals not with individual quantities as such but wit aggregate of these quantities, not with individual incomes but with the national income, not with the individual prices but with the price level, not with the individual outputs but with the national outputs. Main issues in macro economics The main issues which are addressed in macroeconomics are in brief as under: It Helps In Understanding The Determination Of Income And Employment Late J.M Keynes laid great stress on macroeconomic analysis. He, in his revolutionary book, “general theory, employment interest and money” brought drastic changes in economic thinking. He explained the forces or factors which determine the level of aggregate employment and output in the economy. Determination Of General Level Of Prices Macroeconomics analysis answers question as to how the general price level is determined and what is the importance of various factors which influence general price level

Economic Growth The macroeconomics models help us to formulate economic polices for achieving long run economic growth with stability. The new developed growth theories explained the causes of poverty in under developed countries and suggest remedies to overcome Macroeconomics And Business Cycles
It is in terms of macroeconomics that causes of fluctuation I the national income or analyzed. It has also been possible now to formulate policies for controlling business cycles i.e. inflation and deflation

International Trade
Another important subject of macroeconomics is to analyze the various aspects of international trade in goods, services and balance of payments problems, the effect of exchange rates on balance of payment etc. Income Shares From The National Income Mr. M. Kalecki and Nicholas Kelder, by making the departure from Ricarde theory, have presented a macro theory of distribution of income. According t these economists, the relative shares of wages and profits depend upon the ratio of investment to national income.
Unemployment
Another macroeconomics issue is to explain the causes of unemployment in the economy. Stagflation is another important issue of modern economics. The Keynesian and post Keynesian economists are putting lot of efforts in explaining the causes cyclical unemployment and high unemployment coupled wit inflation and suggesting remedies to counteract them. Macroeconomics Polices Fiscal and monetary policies affect the performance of the economy. These two major types of macroeconomic policies are central in the macroeconomic analysis of the economy.

Global Economic System
In macroeconomic analysis, it is emphasized that a nation’s economy is a part of global economic system. A good or weak performance of a nation’s economy can affect the performance of the world economy as awhole.