Limitations of Macroeconomics

Though macroeconomics have various advantages and its quite popular, its not free of its limitations. Lets have a look

1. Dependencies on Individual events
• It is not necessary that what is right for a group, would also right for other groups or individuals.
2. Heterogenous units
• It is very difficult to measure the aggregates for heterogenous units.
• Though units are measured in terms of money, its not a true measure of value in use, it is very difficult to measure the aggregates for heterogenous units.
3. Structure of the aggregate is more important than aggregate itself
• The composition of the structure of aggregate influences the economy is more complex than the aggregate itself
4. Different effects of aggregates
• It does not study different effect of an aggregate  on different sectors of economy
• Aggregates does not have uniform effect on all sectors of an economy
5. Limited application
• Most of models available in macroeconomics does only have theoretical significance
6. Ignores contribution of individual units
• As compare to individual units, a group of units is given more importance in Macroeconomics.
• It is not necessary that what is right for individual person, would also right for a group. 
• For example, an individual can withdraw the amount saved in a bank at a time but if all individuals do the same, the banks will have to close down.
7. Difficulty in Measuring Aggregates
• Under macro economics, measurement of aggregates becomes very difficult. The reason is that there are numerous items in a group, which are sometimes not possible to measure separately.
8. Danger in Ignorance of Individual Units
• When we study a group under macro economics, there is always a danger that we may ignore the numerous individual units which form the group.