Macroeconomics: Macro economics is the study of economy as a whole.

There are two

economic policies that are monetary policy and fiscal policy. They are used to generate an
aggregate demand. There are four objectives of macro economics that are to control the price
inflation, to achieve full employment, to achieve economic growth and balance of payments.

Gross Domestic Product: Gross domestic product is one of the assessments of

macroeconomics that is the per capita income of the individuals of that country. They are
adjusted by keeping an eye on the inflation. A proper attention gives on that for the growth of
economic, changes in living standards and the division of income among the groups.

Gross National Product: Gross national product is another component that is used to
measure the value of finished goods and service produce nationally in our country. The factors
on which GNP is based are market price of goods, production components, measured on annual
basis at end of the year and picks up only the finals services and goods into measurement.
There are two approaches of the gross national product. The first one is income approach in
which we consider the income from the production factors to the country. Gross national
product is the total sum of the salaries, interest income, rental income and the profit. The
second approach of gross national product is expenditure in which we measure the cost occurs
on all the products and services given by them and cost is based on the market value at that
time.

National Income: National income is the third component of the macroeconomics that is
used to calculate the value received from the goods produced and services given in a year.
There is equilibrium in national income which means aggregate demand is equal to aggregate
supply. There must be balance of payments means that your exports are balanced with the
imports. Four essentials of balance of payments are trade in goods, trade in services, income
and the last one is transfer. Essential of payments are split into current account, capital account
and financial account.

Business Cycle: There are large number of fluctuations comes in the business cycles. When
the business starts the economy goes to the peak, a downturn comes and then go to the
recession. Gradually the expansion occurs and reached the reached the desired growth with
passage of time.

Monetary Policy: Monetary policy is followed by the bank that brings the involvement of the
management for supply of money and the interest rates and is used by the government to meet
the objectives of the macroeconomics. This results in the growth in economic conditions of
country.

Fiscal Policy: Fiscal policy is implements by the government to review the cost and the tax
rates that affects the economy of the nation. Just like monetary policy this policy is used by the
government to countrys money balance. The combination of these two policies results in a
positive manner and provides the highest economic growth.

Inflation: Inflation is a persistence increase in prices. When the prices increase the currency
devalue. There are two types of inflation. The first one is general inflation which occurs when
the price of almost everything increases. The second type is specific inflation that defines as
when prices of any specific commodity get increased just like the price of medicine. The main
causes of inflation are demand pull factors means when your demand is greater than your
supply, when cost of production increases, prices of imports increased every year, price inflates
due to expectations of people, when purchases increase then demand increase. There are three
indicators of inflation that are leading indicator, coincident indicator and lagging indicator.
Leading indicator means that you realize that prices will go up before the event is going to
happen. The coincident indicators indicate on the spot that prices will go up. Lagging indicators
indicates after the event has occur such as you export more wheat and realize after five months
that domestic need is not going to be satisfied.

Unemployment: Unemployment means people are not getting the proper jobs. There are
many types of unemployment are as under. These are real wage unemployment when supply
increase and demand becomes low, frictional unemployment when you are moving from one
job to another, cyclical unemployment that relates with the seasonal business, structural
unemployment means when organization moves from tall to flat such as delayring,
technological unemployment that means reducing the number of employees because of the
technology just like downsizing, voluntary unemployment that defines that you are not doing
the job with her own choice and discretion.