See, the question is, what is macroeconomics in economics in simple words? Define macroeconomics class 12 CBSE Board

Hello, How are you, By the way welcome to Commerce School.

See, The macroeconomics of class 12 according to the syllabus of CBSE Board starts from the National Income.

This is the first chapter. Even though not much stress has been given to actually explain what is macroeconomics.

However, to have a brief idea, first, have a glance at a short definition of it.

Table of Contents

Definition of Macroeconomics Class 12 CBSE Board

Macroeconomics is the study of economic aspects of the country as a whole.
Book s.k aggarwal

For example:- studies concerning with

are all macroeconomics studies.

Explanation of definition of Macroeconomics

Let’s have an example to understand it much better.

See, there is one economic aspect, that is Income.

Note:- income, demand, supply, production, money etc. These all are called economic aspects.

Let’s assume, there is a small country consists of only 10 Individuals. Each individual is earning some money.

So when we study how much an individual earning, this study is called Microeconomics.

But when we study the income activity of all individuals of a nation in total, this is called macroeconomics study.

Without going through the microeconomics study, we can not do macroeconomics. In Short sum total of microeconomics, studies is itself called Macroeconomics.

For Example:-

If one individual is earning Rs. 1000. The study of income of this individual is called Microeconomics.

10 Individual is earning 1000*10 = 10,000. The study of income of all 10 individuals is called Macroeconomics.

Note:- These 10 Individual Consist of a country, thus by studying the income of all 10 individuals we are doing this activity at the national (country) level.

This is what is written in Definition, we are studying income as an economics aspect, at a country (National) level as all 10 individuals consist a nation.

What is Macroeconomics in simple words

The Income earning activity by an individual is a micro activity and study of this activity is called microeconomics.

On the other hand, the income-earning activity of all the individuals of a nation taken together is a macro activity, and the study of this activity is called macroeconomics.

Further Reading

S.N	Topics
1.	What is Macroeconomics
2.	What are Goods in economics
3.	What are Consumption Goods
4.	What are capital goods
5.	What are intermediate Goods
6.	What is intermediate consumption
7.	What are final Goods
8.	What is Final Consumption
9.	What is investment in economics
10.	What is stock and flow
11.	What are transfer payments
12.	What is circular flow of income
13.	What is Domestic Territory of a Country
14.	What is normal resident of a country
15.	Nominal GDP and Real GDP

S.N	Topics
1.	What is GDP Deflator
2.	What are externalities in economics
3.	Limitations of GDP as a measure of welfare

S.N	Topics
1.	Items to be included in National income
2.	Items to be included in Domestic Income

S.N	Topics
1.	National Income and Related Aggregates, formula, Definition, process
2.	Value added Method, formula, Definition, process
3.	Income Method, formula, Definition, process
4.	Expenditure Method, formula, Definition, process
5.

S.N	Topics
1.	150+ Numerical of Value Added Method
2.	150+ Numerical of Income Method
3.	150+ Numerical of Expenditure Method
4.	150+ Numerical of National Income and related aggregates