Archive | Macroeconomics

Micro-Foundation of Macroeconomics | Economics

The lack of clear connection between macroeconomics and microeconomics has long been a source of controversy and discontent among economists. K. J. Arrow (1967) called it a 'major scandal' that neo-classical price theory cannot account for such macroeconomic phenomenon as unemployment. R. Lucas and T. Sargant (1979) argued that Keynesian Macroeconomics is 'fundamentally flowed' by its lack of firm micro [...]

By |2017-03-04T14:07:48+05:30March 4, 2017|Macroeconomics|Comments Off on Micro-Foundation of Macroeconomics | Economics

6 Major Macro-Economic Issues

The following points highlight the six major macro-economic issues. The issues are: 1. Employment and Unemployment 2. Infla­tion 3. The Trade Cycle 4. Stagflation 5. Economic Growth 6. The Exchange Rate and the Balance of Payments. Issue # 1. Employment and Unemployment: Un­employment refers to involuntary idleness of resour­ces including manpower. If this problem exists, society's actual output (or GNP) [...]

By |2016-05-16T07:49:44+05:30May 16, 2016|Macroeconomics|Comments Off on 6 Major Macro-Economic Issues

Macro-Economics: Goals and Policy

In this article we will discuss about the Macro-Economics:- 1. Goals of Macro-Economic 2. Policy to Achieve Macro-Economics Goals 3. Distinction between Stocks and Flows. Goals of Macro-Economic: Two important macroeconomic goals are: (1) An efficient allocation of resources, and (2) An equitable distribution of income. Macroeconomic goals are re­lated to the above four key macro variables. In fact, four [...]

By |2016-05-16T07:49:42+05:30May 16, 2016|Macroeconomics|Comments Off on Macro-Economics: Goals and Policy
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