Macroeconomics: If the economy is growing or slow down how do u say?

Factors one needs to understand educate him about the current status of specific economy

Microeconomics – analyses the economy of individual units but macro is India as a whole.

Macro economy aggregates the behavior of the individuals.

How to you say economy is growing – look @ GDP growth rate, national income but not the income
of one company. Not income of one industry. As long as it grows at a healthy rate growing at a good
pace oe else u say there is slow down

Global economy is encountering with covid. A country is doing well of it has good production good
growth in income low unemployment stable inflation and stable exchange rates.

Central themes of Macroeconomics:

Business cycle and economic growth. - also called as trade cycle or economic cycle

Upward swing – boom (more money in their pockets) downswing -economy contracts

Subprime leading – without checking credit history. Market collapsed

Margin of uncertainty is high in long run; national economy should ensure that shorter cycles are
good. if inflation reaches to 2.5 % in USA and 6% in India – take fiscal monetary measures it moves
down in cyclic path short cycle gives space for investors.

JM Keynes – great depression in 1930’s