DEFINITION OF MACROECONOMICS:
In 1933, Swedish economist Professor Ragnar Frisch primary applied and invented the particular key phrase ‘macro’. The phrase macroeconomics hails from the Ancient Greek expression “makros”, which means large, big, huge, significant, substantial.
Macroeconomics is among the significant subdivisions from the review of economics.Macroeconomics is the review of economics including phenomena in which influences a complete economic climate, which include gross domestic product, the rate of employment, price levels, the particular periods in the enterprise cycle, the rate of inflation, economic development, economic decrease, the amount of money supply, the level of government debt, the short-term and long-term effects plus the interrelationship involving different economic areas.
According to R. G. D. Allen: “The term macroeconomics applies to the study of relations between broad economic aggregates such as total employment, income and production.”
In the words of Edward Shapiro: “ The major task of macroeconomics is the explanation of what determines the economy’s aggregate output of goods and services. It deals with the functioning of the economy as a whole”.