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Macro means large economics is the term that deals with the management of commodity to the consumers. Each economy is made up of individual markets based on individual products and their respective consumer groups. An analysis of these markets is done individually to determine risks and outcomes at a smaller level. However, the total factor across a sum of these markets together must be studied for different reasons. In essence, the aggregate demand and supply of a group of individual markets connected to one another is termed as a macro or the whole flow of the economy's surplus or a fill in demand scenario in case of a scarcity.

These are together known as macroeconomics. Many occurrences such as unemployment, inflation, national income, etc; are the cumulative effect of the outcomes from smaller economies. The total information providing the bird's eye view is studied under this domain. The early proponents of the macro economics as a separate domain were proposed after World War II. Theories such as the monetary theory and business cycle closely gathered information on the GDP of the national economy and hence laid the foundation of the large economic analyses. Information and results from these applications were made more accurate with the advent of high level computation technology.

Another event that led to the realization of macroeconomic theory was the great depression. The classical economics proposes that the economy will be balanced so far there is availability of employment and goods to be sold. However, the depression had unsold goods in the market and unemployment at the same time. This made the theory of economy invalid. The answer came from John Maynard Keynes. His theories were later analyzed and followed in modern economics as Keynesian Economics. The most proficient answer was the introduction of the liquidity preferences.

This theory proposed that individual consumers and businesses preferred to hold on to their cash and other liquid resources at times of economic depression. Therefore the businesses were not ready to spend their liquid wealth on labor thus creating unemployment while the individual consumers reduced their consumption to save or retain their cash thus creating unsold goods in the marker.For any macroeconomics assignment help related queries, you may contact us through our LIVE CHAT facility.

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