General Theory Of Employment, Interest And Money

2303 Words10 Pages
Managerial Economics

Table of Contents
Introduction 2
Objectives 2
Analysis 3
Economic Analysis of India 3
Key challenges and recommendations 4
Long-run economic growth and impact of macroeconomic stabilization policy 5
Macroeconomic concepts related to international trade 5
Illustration 6
Conclusion 9
References 9

Broadly speaking, the modern economic science has two major components: microeconomics and macroeconomic. Compared to microeconomics, macroeconomics is a wider branch of economics. In 1936, macroeconomics emerged as a separate division of economics with the publication of John Maynard Keynes’ revolutionary book “The General Theory of Employment, Interest and Money”. In the study of microeconomics, it is examined how individual units, whether they be households or firms, come to a decision on how to allocate resources and whether those decisions are appropriate. On the other hand, in macroeconomics, the economy is studied as a whole. Macroeconomics studies the aggregate outcomes of all the decisions that households, firms, and the government make in an economy. Accordingly, the study of the behaviour of and structural changes in, aggregate or national production, aggregate consumption, aggregate savings, aggregate investment, general price level, total exports and imports and a country’s balance of payment position can be considered as the subject matters of macroeconomics. For the purpose of macroeconomic studies, all
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