Macro Aggregates (A) Meaning : We have briefly drawn a distinction between micro and macro economic branches of analysis: microeconomics mainly deals with individual and small units of economic activities, whereas macroeconomics is more concerned with aggregate economic activity at the social and national levels. It deals with aggregative quantities and problems arising out of them, such as supply of money, national consumption, investment, level of effective demand, government spending , proportion of national income saved, annual growth of the economy, foreign trade , balance of payments and rate of exchange. All such macro level transactions are conveniently quantifiable and can be subjected to a mathematical approach. It is concerned not only with a fuller utilization of all existing resources such as labor, power, land, raw materials, machinery and equipment, but also with the increase of all potential resources. All such resources, supply and utilization activities relate to a very long span of time. Expectations of
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This note was uploaded on 11/17/2011 for the course EC ec 201 taught by Professor - during the Fall '10 term at Montgomery.