Loopback is a powerful new audio routing app for Mac that lets you turn both apps and physical components into a single virtual audio device. Not only can you create combined audio sources that are available system-wide, you can also create virtual pass-through devices to send audio between apps.
With Loopback's virtual audio devices you can, for instance, combine the audio from your microphone with music from iTunes, and easily send that music to fellow participants in a Skype call. You can also combine multiple pieces of audio hardware to record across multiple channels in apps like GarageBand and Logic, which usually only record from a single audio device at a time.
You can easily create combined audio and pass-through devices in the app's home screen. Just click "New Virtual Device" button at the bottom of the sidebar. You can set the device to mute other audio sources, and select whether to map the audio channel automatically or manually. Once created, these devices will appear as options in your Mac's Sound preference pane, and as audio input and output options in audio apps.
Loopback can be downloaded directly from Rogue Amoeba, and is available in a fully-functional trial mode, which degrades audio quality after 10 minutes. Purchasing an app license will cost you $75.
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Source: Rogue Amoeba