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Chapter 1
Chapter 1 IntroductionIntroductionIntroductionIntr oductionIntroductionYou must have already been introduced to a study of basicmicroeconomics. This Chapter begins by giving you a simplifiedaccount of how macroeconomics differs from the microeconomicsthat you have of you who will choose later to specialise in economics,for your higher studies, will know about the more complexanalyses that are used by economists to study macroeconomicstoday. But the basic questions of the study of macroeconomicswould remain the same and you will find that these are actuallythe broad economic questions that concern all citizens Will theprices as a whole rise or come down?
5 Introduction 1.2 CONTEXT OF THE PRESENT BOOK OF MACROECONOMICS We must remember that the subject under study has a particular historical context. We shall examine the working of the economy of a capitalist country in
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