Summary DEFINITION OF MACROECONOMICS

Definition of Macroeconomics Macroeconomics is essentially the study of the performance and the behaviour of the economy as whole. Nevertheless, some economists have attempted to define macroeconomics according to their own perception of its subject matter: Gardner Ackley: “Macroeconomics is the study of forces or factors that determine the levels of aggregate production, employment and prices in the economy, and their rate of change over time” Kenneth E Boulding: “Macroeconomics is the study of the nature, relationships and behaviour of aggregates of economic quantities.... Macroeconomics ... deals not with individual quantities as such, but with aggregates of these quantities … not with individual incomes, but with the national income, not with individual prices, but with the price levels, not with individual output, but with the national output”