What is macroeconomics? Explain its uses/importance.

Macroeconomics... 

The term 'macro' seems to have derived from Greek word 'makros' meaning large. So macroeconomics is concerned with the economic activities as a whole. It studies the situation and performance of aggregate and sub aggregate variables of the whole economy like national income, general price level, total employment, total investment, inflation, deflation etc. Therefore, it's also called aggregate economics. It analyzes and establishes functional relationship between these aggregates and sub aggregates variables. It has the objective of studying policies, principles and problems relating full employment and growth of resources. According to K. E Boulding "Macroeconomics deals not with individual quantities but with aggregate of these quantities, not with individual incomes but with national income, not with individual prices but with price level, not with individual output but with national output".

     It tries to explain how country's output of goods and services and employment of resources are determined. So it's also called income and employment theory. It's the study of whole jungle not an individual tree. It is also termed as bird's eye view analysis of economic variables of the whole economy. 

      Importance/uses of macroeconomics ... 

Like microeconomics, macroeconomics has also theoretical and practical importance. Some of them are as follows:

1. It helps to study the economy in totality because it's concerned with aggregates and sub-aggregates related to whole economy.

2. It helps to formulate and implement various economic policies for the overall development of the country specially monetary and fiscal policy. 

3. It's als helpful to study and expand the various theories of macroeconomics. 

4. It helps to know the situation of the whole economy whether it's performed smoothly or not. 

5. It helps to gain the knowledge of various sectoral variables like agriculture, industry, transport, communication etc. 

6. It helps to solve various monetary problems like money supply, inflation, deflation etc. 

7. It guides the government to carry out various development activities throughout the country. 

8. It's useful to study the various aspects of trade cycle like depression, recovery, prosperity and recession. 

9. It can be used to study the various aspects of national income like GDP, GNP, per capita income etc. 

10. It's also helpful to study various aspects of population like CBR, PGR, CDR etc.