- Macroeconomics is a branch of economics which refers to the “big picture” version of economics like how interest rates are determines and why some countries’ economies grow faster than others’.
- this branch of economics that studies the behavior and performance of an economy as a whole. It focuses on the aggregate changes in the economy such as unemployment, growth rate, gross domestic product and inflation.
- Macroeconomics analyzes all aggregate indicators and the micro-economic factors that influence the economy. Government and corporations use macroeconomic models to help in formulating of economic policies and strategies. The video below could be helpful in understanding what macro economics is.
Macroeconomics, can be thought of as the “big picture” version of economics. Rather than analyzing individual markets, macroeconomics focuses on aggregate production and consumption in an economy, the overall statistics that macroeconomists miss. Some topics that macroeconomists study include
- effects of general taxes such as income and sales taxes on output and prices
- causes of economic upswings and downturns
- effects of monetary and fiscal policy on economic health
- effects of and process for determining interest rates
- causes for some economies growing faster than other economies
To study economics at this level, researchers must be able to combine different goods and services produced in a way that reflects their relative contributions to aggregate output. This is generally done using the concept of the gross domestic product (GDP), and goods and services get weighted by their market prices.
According to Britannica.com Macroeconomics, study of the behaviour of a national or regional economy as a whole.
It is concerned with understanding economy-wide events such as the total amount of goods and services produced, the level of unemployment, and the general behaviour of prices.
Unlike microeconomics—which studies how individual economic actors, such as consumers and firms, make decisions—macroeconomics concerns itself with the aggregate outcomes of those decisions.
For that reason, in addition to using the tools of microeconomics, such as supply-and-demand analysis, macroeconomists also utilize aggregate measures such as gross domestic product (GDP), unemployment rates, and the consumer price index (CPI) to study the large-scale repercussions of micro-level decisions.