Introduction of macro environment, presentation

This presentation describes the detailed information about macro environment

1. Economics
All economic questions and problems arise because
human wants exceed the resources available to satisfy
them.
Scarcity:
The condition that arises because the available resources
are insufficient to satisfy wants.

Faced with scarcity, we must make choices—we must
choose among the available alternatives.

2. Economics

Economics:
The social science that studies the choices that we make
as we cope with scarcity and the incentives that
influence and reconcile our choices.

The subject has two broad divisions—
microeconomics and macroeconomics

3. Economics
Microeconomics is the branch of economics that
examines the behavior of individual decision-making
units—that is, business firms and households.

4. Economics

Macroeconomics is the branch of economics that
examines the behavior of economic aggregates—
income, output, employment, and so on—on a
national scale.

5. The role and importance of
Macroeconomics
It is the study of the behavior of large collection of
economic agents
It focuses on
1.the aggregate behavior of consumers & firms
2.how the govt. conduct its operations & duties
3.the overall level of economic activity
4.the economic interaction among nations
5.the effects of fiscal and monetary policies

6. Some central questions of
Macroeconomics
⚫How can a nation increase its rate of economic growth?
⚫What causes short-run fluctuations in the economy?
⚫What influences the values various economic
indicators and how do those indicators affect economic
performance?
⚫Why do output and employment sometimes fall, and
how can unemployment be reduced?
⚫ What are the sources of price inflation, and how can it
be kept under control?

7. Some central questions of
Macroeconomics
⚫Why are some countries exceedingly rich while others
exceedingly poor?
⚫Can govt. policies help in improving a nation’s
economic performance?
⚫How does being part of global economic system affect
nation’s economies

8. Macroeconomists develop models that explain
the relationship between factors
⚫National Income
⚫Output
⚫Consumption
⚫Unemployment
⚫Inflation
⚫Savings
⚫Investment
⚫International trade

9. Core objectives of macroeconomic
policy
⚫High level of output
⚫Full employment
⚫Price stability
⚫Sustainable balance of payments
⚫Rapid economic growth

10. Macroeconomic policy
⚫Fiscal Policy
⚫Monetary policy
⚫Exchange rate policy
⚫International trade policy/ Exim policy
⚫Employment policy
⚫Industrial policy