Macro Economics Theory and Practice

The study of macro economics is. essential for the proper understanding of micro economics. For example the detnand for industry could not have been formulated with reference to the behavior pattern of one individual\'s demand. The demand curve for industry was possible only after the behavior our pattern of several individual consumers had been examined and analyzed. Only then we reach at the aggregate values. Thus we can say that the knowledge of macro economics is not possible without understanding micro economics. The major problem of most of the developing countries is to accelerate the rate of economic development. Study of macro economics has shown the path of the high rate of growth. For example, it has been formed that rate of capital formation is very high in the developed countries. Therefore the developing countries should increase the rate of capital formation to accelerate the rate of growth.