Macroeconomics is the study of economy as a whole.
There are two economic policies that are
monetary policy and fiscal policy. They are used to generate an aggregate demand. There are four objectives of macro economics that are to control the price inflation, to achieve full employment, to achieve economic growth and balance of payments. Gross domestic product is one of the assessments of macroeconomics that is the per capita income of the individuals of that country. They are adjusted by keeping an eye on the inflation. A proper attention gives on that for the growth of economic, changes in living standards and the division of income among the groups. Gross national product is another component that is used to measure the value of finished goods and service produce nationally in our country. The factors on which GNP is based are market price of goods, production components, measured on annual basis at end of the year and picks up only the finals services and goods into measurement. There are two approaches of the gross national product. The first one is income approach in which we consider the income from the production factors to the country. Gross national product is the total sum of the salaries, interest income, rental income and the profit. The second approach of gross national product is expenditure in which we measure the cost occurs on all the products and services given by them and cost is based on the market value at that time. National income is the third component of the macroeconomics that is used to calculate the value received from the goods produced and services given in a year. There are large number of fluctuations comes in the business cycles. When the business starts the economy goes to the peak, a downturn comes and then go to the recession. Gradually the expansion occurs and reached the reached the desired growth with passage of time. Monetary policy is followed by the bank that brings the involvement of the management for supply of money and the interest rates and is used by the government to meet the objectives of the macroeconomics. This results in the growth in economic conditions of country.