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on Thu Sep 20, 2012 7:31 pm

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(from Greek prefix "makros-" meaning "large" + "economics") is a branch
of economics dealing with the performance, structure, behavior, and
decision-making of the whole economy. This includes national, regional,
and global economies. With microeconomics, macroeconomics is one of the
two most general fields in economics.
Macroeconomists study aggregated indicators such as GDP, unemployment
rates, and price indices to understand how the whole economy functions.
Macroeconomists develop models that explain the relationship between
such factors as national income, output, consumption, unemployment,
inflation, savings, investment, international trade and international
finance. In contrast, microeconomics is primarily focused on the actions
of individual agents, such as firms and consumers, and how their
behavior determines prices and quantities in specific markets. While
macroeconomics is a broad field of study, there are two areas of
research that are emblematic of the discipline: the attempt to
understand the causes and consequences of short-run fluctuations in
national income (the business cycle), and the attempt to understand the
determinants of long-run economic growth (increases in national income).
Macroeconomic models and their forecasts are used by both governments
and large corporations to assist in the development and evaluation of
economic policy and business strategy.


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