Macroeconomics

Macroeconomics is a branch of economics that deals with the performance, structure, and behavior of a national economy as a whole. Along with microeconomics, macroeconomics is one of the two most general fields in economics. Macroeconomists study aggregated indicators such as GDP, unemployment rates, and price indexes to better understand how the economy functions. Macroeconomists endeavor to 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: one is to understand the causes and consequences of short-run fluctuations in national income (the business cycle), and the other is to understand the determinants of long-run economic growth (increases in national income).Analytical illustrations and forecasts are used not only by governments but also corporations to assess the impacts of economic policy and avoid procyclical influences.