Macro economics in agriculture

==>INTRODUCTION
Macroeconomics is the study of how the economy behaves in broad outline without dwelling on much of its detail. Macroeconomics is largely concerned with the behaviour of economic aggregates such as total national product, total investment, and the exports for the entire economy. It is also concerned with the
average price of all goods and services, rather than with the prices of specific products. In contrast, Microeconomics deals with the behaviour of individual markets and with the detailed behaviour of
individual agents such as firms and consumers.
In Macroeconomics, values of all goods and services are added with a view to studying the movement of the aggregate national product. Besides, the general price level for the entire economy is discussed using
the average of the prices of all goods and services.
In Macroeconomics, we look at the broad range of opportunities and difficulties facing the economy as a whole. When national product rises, the output of most products and the incomes of most people usually rise with it. When the price level rises, virtually every one in the economy is forced to make adjustments
because of the lower value of money. When the unemployment rate rises, workers are put at an increased risk of losing their jobs and suffering losses in their incomes. These movements in economic aggregates
are strongly associated with the economic well being of most individuals vis – a vis the health of the sectors in which they work and the prices of the goods that they purchase. These associations are why
macroeconomic aggregates particularly inflation, unemployment and the balance of payments are often in the news.

==>NATIONAL INCOME ACCOUNTING
Economics deals with the national well being of people. People derive this material well being from the flow of goods and services available for their uses which are produced in the country during the year. It is this flow which we can call the national income or output, which economists are interested in increasing.
Economics is therefore concerned with the production of income in the form of goods and services with its distribution among themselves, groups or countries with the stability of production, and with a whole
range of diverse factors and influences that impinge directly on these things.
Economists can only assess the effectiveness of economic policy by measuring/or knowing what is
happening to national income. Note that income is measured per unit of time usually one year; the flow of income includes services, as well as goods although money value is the only common denominator
which enables us to add up to make up incomes, our concern is not with money itself but what money will buy. Thus, national income is a measure of the money value of goods and services which arise
from the productive activities of the nation in any one year.
National income accounting is the measurement of aggregate economic activities and its components. It
provides a useful perspective on the way the economy works. It shows how factor markets relate to product markets; how output relates to income; and how consumer spending and business investment relate to production. It also shows how the flow of taxes and government spending may alter economic
njmoutcomes. We must also take account of depreciation, the wear and tear in capital equipment used to produce output. If no steps are taken to maintain the productive capacity of the nation‟s stock of
equipment, the flow of goods and services will eventually decline.
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==>Approaches to National Income Measurement.
A large array of goods and services constitutes total output of an economy. The problem however is finding a summary measure of the goods and services. To facilitate our accounting chores, we need
some mechanism for organizing annual output data into a manageable summary. The mechanism in use
is prices. Each good and service produced and brought to the market has a price. That price serves as a measure of value for calculating total output. Once we know the price of each good, we can calculate the
value of output produced in a given time period.
The total monetary value of final output produced each year within a country is referred to as Gross Domestic Product (GDP). GDP can therefore be simply described as the sum of all final goods and
services produced within a country for the market in a given time period, with each good or service

valued at its market price. The use of prices to value market output allows us to summarize output activity and to compare the output of one period with that of another.