Macroeconomics Fundamentals

Introduction to Macro Economics

• Economics is classified as a social science because it deals with human problems.
• The study of economics involves understanding human wants, needs, scarcity, resources, goods and services, economic choice, and the laws of supply and demand.
• Economics is divided into two branches: macroeconomics and microeconomics.

Origin of Macro Economics

• The term 'macro' was first used in economics by Ragner Frisch in 1933.
• The methodological approach to economic problems originated with the Mercantilists in the 16th and 17th centuries.
• Mercantilists were concerned with the economic system as a whole.

Definition and Scope of Macro Economics

• Macroeconomics is a branch of economics that deals with the performance, structure, behavior, and decision-making of an economy.
• The term 'macro' comes from the Greek prefix Makro-, meaning "large", and is combined with economics to form macroeconomics.

Test your knowledge on the fundamental concepts of macroeconomics in this quiz. Explore the meaning, definition, nature, and scope of macroeconomics, including the study of human wants, needs, scarcity, resources, goods and services, economic choice, and the laws of supply and demand.