The term macro economics is derived from the Greek word Macro meaning large. This domain of economic study deals with the performance and structure of the economy as a whole rather than that of the individual markets. Macroeconomic study deals with the economic indicators like the GDP (Gross Domestic Products), rates of unemployment, and the methods by which these indicators interplay to impact the functioning of the whole economy. Macro economists deal with the development of the models which explain the relationships between certain economic parameters like the national income , rate of inflation, international trade, the business cycles, rate of savings and consumption etc.
The study of macro economics in its contemporary form and style began with the publication of “General Theory of Employment, Interest and Money “ by John Maynard Keynes. From Keynes the study of Macro Economic concepts were further developed by Paul Samuelson, Franco Modigliani and James Tobin to name a few.
Fundamental researches have shaped the subject in numerous ways contributing to new and innovative concepts. The new Keynesian concepts have developed rational expectations and focused on development of models based on micro economics. Econometrics based on mathematics is the latest entrant to macro economics.
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