Macroeconomics analyses the behaviour of the whole economic system in totality or entirely. In other words, macroeconomics studies the behaviour of the large aggregates such as total employment, the national product or income, the general price level of the economy. Therefore, macroeconomics is also known as aggregate economics. Prof. Boulding says, “Macroeconomics deals not with individual quantities as such but with the aggregates of these quantities; not with individual incomes but with the national income; not with individual prices but with the price level; not with individual output but with the national output”
Gardner Ackley says “macroeconomics concerns itself with such variables as the aggregate volume of output in an economy, with the extent to which its resources are employed, with the size of the national income, with the “general price level”. Microeconomics, on the other hand, deals with the division of total output among industries, products and firms and the allocation of resources among competing uses. It considers problems of income distribution. Its interest is in relative prices of particular goods and services.”
