2. DEFINITION
• Macroeconomics is a branch of economics that deals with the performance,
structure, behavior, and decision-making of an economy as a whole.
• It deals with large-scale economic phenomena, such as
• national income,
• unemployment,
• inflation,
• economic growth
• monetary and
• fiscal policies.
3. THEORIES IN MACROECONOMICS:
Classical Economics
classical economics
describes the role of free
markets, self-regulation and
government intervention
should be limited.
Keynesian Economics
Keynesian theory focuses on
the interventions of
government in a business by
making tools like fiscal and
monetary policy
to stabilize the economy and
achieve full employment.
Monetarism
controlling the money
supply as the key to
economic stability and
growth
managing money circulation
is key
to controlling inflation and
stabilizing the economy.
Supply of money
4. ECONOMICS PRINCIPALS :
Scarcity
refers to the limited availability of resources
compared to the unlimited wants and needs of individuals
Supply
Is the total amount of a good or service that is available for purchase at any given price
Demand
is the quantity of a good or service that consumers are willing and able to purchase at
various prices during a given period.
5. ECONOMICS PRINCIPALS
Marginal Analysis
costs of producing or consuming one additional unit of something
Efficiency and Equity
Efficiency is about maximizing output from resources, while equity involves distributing
resources fairly among society
6. MARKET
STRUCTURE
Refers to the organization and
characteristics of a market.
Following are some main
characteristics
1. Perfect competition
2. Monopoly
3. Oligopoly
7. MARKET STRUCTURE
Perfect competition
• Is a market structure where small firms selling identical products.with no single
firm able to influence market prices
Monopoly
• Is a market structure where a single firm control the entire market for a product
Oligopoly
• Is a market structure consists of small number of large firms controlling overall
market price and competition