 It is a separate branch of economics came into existence in  It was founded by JOHN MAYNARD KEYNES in the book “The general theory of employment, interest and money”.  It studies the relationship and interaction between the “Factors or forces”.

 To removing the disastrous experience of 1930’s issue.  To lift the system up to the full employment level to which automatic forces might fail to carry it and maintain this level without inflation.  To control aggregate demand and supply.

 To receive increasing attention of the economists, politicians, govt, international bodies.  Growing complexity of economic system.  Need for govt intervention with the market system.

 Short period.  Perfect competition.  Closed economy.  Ignores the role of govt.  Diminishing marginal product.  No time lag.

 It ignores the structural changes in the constituent elements of the aggregate.  It deals with national aggregate and “Aggregates are not a reality but a picture or approximation of reality”.  Some time, macroeconomics considered as an “Intellectual attraction” without much practical use”.

 To cash holding.  To saving and investment.  To profit and wages

 Microeconomics studies economic behaviour of individual decision-making units.  Macroeconomics studies economic behaviour as a whole.  Microeconomics analyses how individual firms decides on what to produce and how to produce.  Macroeconomics seeks to answer-(a) how(gnp or gdp) is determined.(b) What determines the growth rate of an economic.(c) How the general level of price is determined in an economy.

 Finally, the real economic world is extremely complex. In reality, an economics system looks like a maze of chaos.Nevertheless,there is a uniformity in the economic behaviour of the people which is predictable with a fair degree of accuracy.