Macroeconomics notes (5th edition November 2022

Introduction to
Macroeconomics
Course Supervisor:
Sheeba Tahir
Lecturer-KASBIT

, Today’s outline
What is Economics
Basics of Economics ( Micro and
Macro )
The birth of Macroeconomics.
Macroeconomic concerns
Government in the Macroeconomy
The components of the
Macroeconomy
The importance of Macroeconomics

, Economics:
How societies use scarce resources to produce
valuable goods and services and distribute
them among different individuals.

(Economics, 19th edition by Paul A. Samuelson &
William D. Nordhaus)

, Definitions of Economics
1. Adam Smith Economics is considered as science of wealth as
(1776) it is a study of the factors which are responsible
Wealth for wealth generation. Thus in Economics we
definition study a body of knowledge which relates
to wealth.
2. Alfred Economics is the study of mankind in the
Marshall ordinary business of life; it examines that part of
(1890) individual and social action which is most closely
Welfare connected with the attainment and with the use of
definition the material requisites of well-being.
3. Lionel "Economics is the science which studies human
Robbins behavior as a relationship between ends and
(1932) scarce means which have alternative uses."
Scarcity
Definition