MACROECONOMICS
In 1933, Ragnar Frisch (economist of Oslo University in norway) divided economics into two parts- Macro Economics & Macro Econimics.
The term 'Macro' in English language has its origin in the Greek language term 'Makros' which means 'large'. Therefore, Macro economics study the economic problems from the point of view of entire economy. For example, aggregate consumption, aggregate employment, national income etc.

Definition
According to Boulding," Macro Economic Theory is that part of economics which studies the overall averages and aggregates of the system"
According to Shapiro, “Macro Economics deals with the functioning of the economy as a whole"

Scope of Macro Economics
The scope of macro economics can be divided into following parts:

1) Theory of National Income- Macro economics studies the concept of national income, its different elements, methods of measurement and social accounting.
2) Theory of Employment- Macro economics also studies problems relating to employment and unemployment. It studies different factors determining the level of employment such as effective demand, aggregate supply, aggregate consumption, aggregate investment, aggregate saving etc.
3) Theory of Money- Changes in demand and supply of money has considerable effect on the level of employment. Therefore, macro economics studies functions of money and different theories related to it.
4) Theory of General Price Level- Determination and changes in general price level are also studied under macro economics. Problems related to inflation (general rise in prices) and deflation (general fall in prices) are also studied under macro economics.
5) Theory of Economic Growth- Study of problems related to economic growth or increase in per capita real income forms part of macro economics. Monetary and fiscal policies of the government are also studied under macro economics.
6) Theory of International Trade- Macro economics also studies trade among different countries, Theory of international trade, tariff etc. are subject of great significance to macro economics.

DIFFERENCE BETWEEN MICRO AND MACRO ECONOMICS
Basis
Micro Economics
Macro Economics
1)      Degree of Aggregation
Studies economic problems relating to a single economic unit like a firm or a small group of economic units like an industry.
Studies economic problems of all firms in the industry.
2)      Central Problems
Price determination
Determination of total production and total employment
3)      Importance to Price and Income
Economic units like consumers, producers, factor of production etc. take their decisions on the basis of price
Macro economic decisions regarding aggregate consumption, aggregate investment, aggregate saving etc. ate taken mainly on the basis of income
4)      Objectives
Studies the principles, problems and policies relating to the optimum allocation of resources
Studies the principles, problems and policies relating to full employment and growth of the resources of the economy
5)      Government Intervention
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