Macroeconomics is the study of economy as a whole.

There are two economic policies that are

monetary policy and fiscal policy. They are used to generate an aggregate demand. There are
four objectives of macro economics that are to control the price inflation, to achieve full
employment, to achieve economic growth and balance of payments. Gross domestic product is
one of the assessments of macroeconomics that is the per capita income of the individuals of
that country. They are adjusted by keeping an eye on the inflation. A proper attention gives on
that for the growth of economic, changes in living standards and the division of income among
the groups. Gross national product is another component that is used to measure the value of
finished goods and service produce nationally in our country. The factors on which GNP is based
are market price of goods, production components, measured on annual basis at end of the
year and picks up only the finals services and goods into measurement. There are two
approaches of the gross national product. The first one is income approach in which we
consider the income from the production factors to the country. Gross national product is the
total sum of the salaries, interest income, rental income and the profit. The second approach of
gross national product is expenditure in which we measure the cost occurs on all the products
and services given by them and cost is based on the market value at that time. National income
is the third component of the macroeconomics that is used to calculate the value received from
the goods produced and services given in a year. There are large number of fluctuations comes
in the business cycles. When the business starts the economy goes to the peak, a downturn
comes and then go to the recession. Gradually the expansion occurs and reached the reached
the desired growth with passage of time. Monetary policy is followed by the bank that brings
the involvement of the management for supply of money and the interest rates and is used by
the government to meet the objectives of the macroeconomics. This results in the growth in
economic conditions of country.