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INTRODUCTION
MICS TO
ECONOMICS
INTRODUCTION
Definition of Economics
The study of how society
chooses to allocate its
scarce resources to the
production of goods and
services in order to satisfy
unlimited wants
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What is Macroeconomics?
Microeconomics examines the behavior
of individual decision-making units
business firms and households.
Macroeconomics deals with the economy
as a whole; it examines the behavior of
economic aggregates such as aggregate
income, consumption, investment, and the
overall level of prices.
Aggregate behavior refers to the behavior of
all households and firms together.
What is Macroeconomics?
Its about Economy at Large.
Macroeconomics studies about World
Economy, Share Market, Global
Trade, Political hand on Markets,
Exports and Imports etc.
Macroeconomics deals with Inflation,
GDP, GNP, Currency Value, Exports,
Government Economic Policies etc.
The Roots of
Macroeconomics
The Great Depression
was a period of severe
economic contraction and
high unemployment that
began in 1929 and
continued throughout the
1930s.
The Roots of
Macroeconomics
The accepted economic theory of the
Importance of Macro
economics
To understand the working of the
economy:
Macroeconomic variables like Total
Income, Total Output, Employment
and General Price level help us in
analysing the functioning of the
economy.
The Components of
the Macroeconomy
Everyones
expenditure is
someone elses
receipt. Every
transaction must
have two sides.
SUMMARY
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ACTIVITY
Explain the Following in 100 words
each
1.Explain the difference between Microeconomics and
Macroeconomics
2.Why is it important to study Macroeconomics?
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