The lack of clear connection between macroeconomics and microeconomics has long been a source of controversy and discontent among economists. K. J. Arrow (1967) called it a 'major scandal' that neo-classical price theory cannot account for such macroeconomic phenomenon as unemployment. R. Lucas and T. Sargant (1979) argued that Keynesian Macroeconomics is 'fundamentally flowed' by its lack of firm micro [...]
The following points highlight the six major macro-economic issues. The issues are: 1. Employment and Unemployment 2. Inflation 3. The Trade Cycle 4. Stagflation 5. Economic Growth 6. The Exchange Rate and the Balance of Payments. Issue # 1. Employment and Unemployment: Unemployment refers to involuntary idleness of resources including manpower. If this problem exists, society's actual output (or GNP) [...]
In this article we will discuss about the Macro-Economics:- 1. Goals of Macro-Economic 2. Policy to Achieve Macro-Economics Goals 3. Distinction between Stocks and Flows. Goals of Macro-Economic: Two important macroeconomic goals are: (1) An efficient allocation of resources, and (2) An equitable distribution of income. Macroeconomic goals are related to the above four key macro variables. In fact, four [...]