Meaning/Introduction to Open Economy An economy in which there is the provision of international trade or foreign trade is known as an open economy. It means the economy that has a freedom of socio-economic relationship with the rest of the world is an open economy. Domestic people and businesses can trade in goods and services …
Based on participation in international trade, economies can be divided into two types the closed economy and the open economy. Here we introduce a closed economy (Introduction to the closed economy). An economy that does not participate in international trade is known as a closed economy. Thus, a closed economy refers to an economy that …
The performance and behavior of the economy can be shown and analyzed by different economic variables and these are known as macroeconomic variables. Thus, macroeconomic variables are indicators or pointers that exhibit the situation and trends of the entire economy or show the pattern of the economic status of a country. Macroeconomic variables are crucial …
Macroeconomics is the study of aggregates like national income, national product, total consumption, total saving, total investment, etc. The study of macroeconomics assists to realize the operation of a complicated modern economic system. It defines and describes how the economy functions and how the level of national income and employment is determined based on aggregate …
The word ‘scope’ refers to the range or area covered by anything, any subject, or any topic. Thus, considering this point the term scope of macroeconomics means the topics or issues that are covered by macroeconomics. Macroeconomics has got birth after the publication of J.M. Keynes’s General Theory of Employment, Interest, and Money in 1936. …
Macroeconomics is the part of economics that studies about the economy. The unit to deal in macroeconomics is the entire economy rather than a part of the economy. Thus, macroeconomics deals with the economic problems faced by an economy. Here we will briefly discuss the meaning and features of macroeconomics. Ahuja (2016) states that macroeconomics …