DEFINITION AND SCOPE OF

MACROECONOMICS
Guided by Afni Regita Cahyani Muis, M.A.
 Macroeconomics deals not with individual
quanitities as such but with aggregates of these
quanitites not with individual income but with
national income, not with individual prices but
with the price level not with individual output
but with national output
• Macro means large or whole.
• The subject of macroeconomics is about
national production, national income, income
level.
• As it analyzes overall it provides full figure or
complete reflection of a country.
• Macroeconomics is concerned with the overall
performance of the economy.
• In macroeconomics, a common issue is the
effects of certain policies on the national or
regional economy.

• while a microeconomist might study the

effects of low interest rates on individual
borrowers, a macroeconomist would observe
the effects that low interest rates have on the
national housing market or the
unemployment rate
Micro and macroeconomic
are interdependent
• The Measurement of National Income
• The Relationship Between Savings and Investment
• The Cost of Living and Inflation
• Interest Rates and What Influences Them
• Recession, Unemployment, and Economic Growth
• Money and Banks
• The Federal Reserve System (Central Bank of USA) and
Monetary Policy
• Government Taxation, Spending, and Fiscal Policy
• International Trade and Exchange Rate
 Macroeconomics focuses on the national
economy. A standard measure of performance is
the growth of real Gross Domestic Product
(GDP), the value of final goods and services
produced in the nation during the year