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 of it. 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.
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
- National Income
- Government Budget
- Balance of Payments
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.
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 individual is called Macroeconomics.
Note:- These 10 Individual Consist of a country, thus by studying the income of all 10 individual we are doing this activity at national (country) level.
This is what written in Definition, we are studying income as an economics aspects, 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 Micro-economics.
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.