Wednesday, 22 February 2012


       The main types of macro economics are as under:-
1.Static macro:-It analyses certain aggregate relations in stationary state but throws no light on the process by which find equlibrium is reached.It simply deals with the final equalibrium is reached.It simply deals with the final eqalibrium of the economy at a particular point of time.This method gives a 'still' picture of the economy as a whole.
2.Comparative macro statics:-We know that various macro variables like total consumption ,total investment and total income go on changing with the passage of time in an economy.As a result,the economy keeps on reaching different levels of equilibria.Thus,this method of comparative macro economic statics involves a comparitive study of different equilibria attained by the economy by the economy.But this method does not detail the process of adjustment by the economy moves from one equlibrium to another.In short,it present only'still'picture of the various equlibria reached by the economy.
3.Macro dynamics:-This method has recently been developed by frisch,D.H.Robertson,M.Kalechi,Tinbergen and P.A.Samnelson.This is the complete and comprehensive method of economic analysis.
       It studies how the equlibrium in the economy is reached consequent upon changes in the macro variables and aggregates.It enables us to separate 'the process of trial and error into a series of continuously changes of aggregates,the sequence of cause and effect on events arising from some initial disturbance and the time paths of macro-variables and aggregative relationship.It also furnished guidance relating to the practical problems of short and long period economic stability.

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