Context of the Present Book of Macroeconomics Video Lecture | Economics CUET Preparation - Commerce

this series is going to be on
macroeconomics and macroeconomics is one
of the major subdivision in the study of
economics so in this lesson you'll learn
what it is why it's important and its
major principles we'll also have a
chance to take short quiz after the
lesson so what is macro economics now
macro economics is the study of
economics involving phenomena that
affects an entire economy including
inflation unemployment price levels
economic growth economic decline and a
relationship between all of these now
whatever that I mentioned these all
occur in large scale you know employment
occurs in large scale inflation happens
in large scale so see all these things
are happening in a large scale now if
you see the other subdivision of
economics which is the microeconomics
here we deal with variables like
households and businesses where in the
decision that is made by these two
entities and how the behave in the
marketplace is discussed so basically if
I have to tell you everything in one
word or maybe two words it's called
macroeconomics deals with the bigger
picture so bigger picture is your two
words because macroeconomics it analyzes
the entire economy you get it the entire
economy of a country that is what is
macroeconomics all about now that we are
done with the definition the next
important question that comes is what is
the importance of macroeconomics or in
other words why do we need it so to
answer this question I want you to think
of it this way we all live in a complex
world while we are living in a complex
world we are all interconnected let me
give you a random example let's say
railways you know you and I everyone
offers travels between now if the Train
industry is not doing good isn't that
going to affect us it is right there's
also going to affect businesses because
train helps in transportation goods
freight trains right similarly now think
of it why train industry would go into
depression so one of the ways it can go
into depression is due to fuel prices
right we need fuel to run clean
suppose these fuel prices are
excessively high
it will definitely hit the train
industry right similarly what else iron
industry right if iron industry is in
depression that will definitely hit the
train industry as well because the
entire train industry is dependent on I
didn't do you see the interconnectivity
that is what I mean interconnected world
and you also see the complex relation
I mean fuel prices as dictated totally
through different variables but it still
has a direct impact on grain industry so
that is what I mean when I say that we
live in a complex world but we are still
interconnected so like this there are
many examples through which our job and
businesses gets affected and if our jobs
and businesses are affected then how are
we going to earn money so that we can
buy goods and services for a basic
survival and function you know to
survive in this modern society we need
money to buy goods and services so to
understand this complex world and its
interconnectivity macroeconomics helps
us in understanding what makes the
economy grow and what makes it contract
now coming to the principles of
macroeconomics macroeconomic study
focuses on three broad areas these are
also known as three economic agents in
the economy and they are households then
we have forms and then we have
government so these three are the main
economic agents in an economy so the
interrelationship between these three
agents is what macroeconomics deals with
now in the coming videos we are going to
learn more on that so I hope in this
video you have understood what is
macroeconomics and its importance there
are few questions that are prepared
based on this video if you may please
answer it and give you answer in the
comment section and thanks for watching
now see you in the next one if you want
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