The word macro has been derived from greek word MACROS which means large. In this way the branch of economics which deals with whole economy is the macro economic. In other words macro economic is that part of economics in which we study about whole economy in way of aggregate or average.
E.g. ; National Income, Total Employment, Aggregate Demand, Aggregate Supply, General Price level, Total Consumption, Total Investment, Monetary and Fiscal Policies of Govt etc. . Macro economics is also known as "Income and Employment Output Theory" because it is related with the determination of Income and Employment in an economy. Prof. J.M. Keyns gives the importance to Macro economics in his book "The General Theory of Employment, Interest and Money" published in 1936. In his book he criticise the classical theory and gives the popularity to Macro economics.
Importance of Macro Economics :
(i) Helpful in formulation of economic policies.
(ii) Helpful in study of whole economy.
(iii) Helpful in measurement of economics development of economy.
(iv) Some problem only can be studied in Macro economics eg. Problems related with National income, General price level, General Employment, Monetary & Fiscal policies of Government
(v) Helpful in comparison of economy.
(vi) Helpful in estimation of General Welfare.
(vii) Helpful in study of Business Cycle.
