Gayatri Badhe − Profile

1. Study Of Aggregates - Macro economics deals with the study of entire economy . it studies the overall conditions in the economy , such as National income , National output , Total employment , General Price level etc.

2. Lumping Method- Macro economics uses the 'lumping' method for the purpose of economic study. The approach of macro econmics is aggregative in nature. it is considers aggregates like National Income , total consumption , general aggreagates price level etc., instead of personal income, per capital consumption, indiviual prices of commodities etc.

3. A General Equillibrium Analysis - Macro Economics analysis is based on general equilibrium. This is because it deals with the economic system as a whole and studies the inter relationships and interdependence between the various macro variables in an economy . e.g. when aggregate demand and aggergate supplt are equal. it will  determine the level of income and employment.

4. Income Analysis - Macro economics is also known as income theory. it studious the factors determining national income and employment and the cause of fluctuations in income and employment.

5. Studies Entire Economic System - Macro economics gives an overall view of the economy . it examines the character of a forest as whole . it gives a bird's eye view of the whole economy.

6. Policy Oriented - The study of Macro economics is useful for the formulation and implementation of economic policies of the government especially monetary and fiscal policies. Macro economic is a policy oriented science .

7. Based on Interdependence - Interdependence is the core subject of Macro economics . Everything depends on everything else . So there is an element interpendence among the Macro - Economic variables. For example, changes in the level of investment will finally result in changes in level of income, output, employment and economic growth.

8. Useful for Micro Economic Analysis - The study of Macro economics is useful for the purpose of micro economics analysis . For example, the law of Dimishing Marginal Utility could not have been formulated unless the experience of masses of indivisuals are taken into account.

1. homoegeneity- the law of DMU assumed that unit of commodity consumed by the consumer are identical. it means all units of consumption of a commodity are perfectly uniform in respect of size , shape, taste, colour, quality etc.

2.single case- the law of DMU assumed that commodity is used to satisfy onaly single want i.e, want of consumption . thus the law assumed that the commodity is not used for any other use except consumption.

3. cardinal measurmment- the law of DMU assumed that the utility can be measured in number. it also assumed that utility derived from each unit commodity can be compared.

4. rationality- the law of DMU assumned that consumer is ratioanl person and his beahavier ins normal . the law of assumed that the rationality consumer want to maximise his satisfaction.

5. continuity- the law of DMU assumed that the all units of consumption are consumed in quick succesion , one after another , thus the law of assumed that here is no gap between  the consumption of any two units.

6. reasonability- the law of DMU assumed that the size of unit of commodity of consumption is neither too small nor too big. the law of assumed that the size of units of commodity of consumption is reasonable.

7. constancy- the law of assumed that income , taste, habits, preferences , liking, etc. of a consumer as well as the price of commodity remains constant.

8. divisiblity- the law of assumed that the commodity consumed by the consumer is divisible.

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