micron economics

7/31/2019 micron economics

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What is macro economics? Macroeconomics is a branch of economics dealing with the

performance, structure, behavior, and decision-making of theentire economy. This includes a national, regional, or globaleconomy. With microeconomics, macroeconomics is one of

the two most general fields in economics. Macroeconomists study aggregated indicators such as GDP,

unemployment rates, and price indicesto understand how thewhole economy functions. Macroeconomists develop modelsthat explain the relationship between such factors as nationalincome, output, consumption, unemployment, inflation,

savings, investment, international trade and internationalfinance. In contrast, microeconomics is primarily focused onthe actions of individual agents, such as firms and consumers,and how their behavior determines prices and quantities inspecific markets.


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Father of Macroeconomics. John Maynard Keynes was born on 5th June 1883 at

6 Harvey Road, Cambridge. He was a British

economist whose ideas have profoundly affected the

theory and practice of modern macroeconomics, as

well as the economic policies of governments. He

greatly refined earlier work on the causes of

business cycles, and advocated the use of fiscal and

monetary measures to mitigate the adverse effects

of economic recessions and depressions.


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Father of Macroeconomics. In the 1930s, Keynes spearheaded a revolution in economic

thinking, overturning the older ideas of neoclassical economicsthat held that free markets would in the short to medium termautomatically provide full employment, as long as workerswere flexible in their wage demands. Keynes instead arguedthat aggregate demand determined the overall level ofeconomic activity, and that inadequate aggregate demandcould lead to prolonged periods of high unemployment.Following the outbreak of World War II, Keynes's ideas

concerning economic policy were adopted by leading Westerneconomies. During the 1950s and 1960s, the success ofKeynesian economics resulted in almost all capitalistgovernments adopting its policy recommendations, promotingthe cause of social liberalism.


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Father of Macroeconomics. Keynes is widely considered to be the father of modern

macroeconomics, and by various commentators such aseconomist John Sloman, the most influential economist

of the 20th century. In 1999, Timemagazine includedKeynes in their list of the 100 most important andinfluential people of the 20th century, commenting that;"His radical idea that governments should spend moneythey don't have may have saved capitalism". In addition

to being an economist, Keynes was also a civil servant, adirector of the Bank of England, a patron of the arts andan art collector, a part of the Bloomsbury Group ofintellectuals, an advisor to several charitable trusts, awriter, a private investor, and a farmer.


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Importance of macroeconomics. The theoretical and practical importance of macro economics is

briefly discussed as:

It is helpful in understanding the functioning of macroeconomics system.

It explains the factors which determine the level of nationalincome and employment in as economic.

It explains the circular flow of national income in an economy.

It explains the problem of unemployment which is a main

problem of developing countries. It explains the various aspects of international trade such as

terms of trade balance of payments, foreign exchange etc.

It studies the causes of fluctuations in the business cycle andto formulate the policies to control inflation and deflation.


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Macroeconomics Objectives & their impact on

Business Activity: Full Employment :- lowest rate of unemployment attainable without

accelerating inflation

Price Stability :- keeping inflation down (monetary policy, fiscal policy)

Economic Growth :- self explanatory.

External policy: - Current account, exchange rate etc.

Equitable distribution of income and wealth :- a fair share of the national'cake', more equitable than would be in the case of an entirely free market.

Increasing Productivity : more output per unit of labour per hour. Also,since labor is but one of many inputs to produce goods and services, it could

also be described as output per unit of factor inputs per hour.


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The career opportunities.

Economics as a career choice provides many employmentopportunities. Economists can be found working in allsectors of the economy, from government, banking, and

private industry to international organizations andnonprofit institutions. Employment as an economist at thestate and local level allows economists to apply their skillsin areas such as forecasting growth, developing trainingprograms for displaced workers, and aiding in establishing

economic development plans for the regional economy.Business economists typically provide firms with forecastsof future economic conditions, which are in turn used tohelp guide the planning and budgeting decisions firmsmake.


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Thats all about my topic.

Thank you all.

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micron economics