What is Macro Economics

Topics: Economics, Macroeconomics, Inflation Pages: 2 (431 words) Published: February 12, 2015
What is Macro Economics?
(from the Greek prefix makro- meaning "large" and economics) is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole, rather than individual markets. This includes national, regional, and global economies. The field of economics that studies the behavior of the aggregate economy. Macroeconomics examines economy-wide phenomena such as changes in unemployment, national income, rate of growth, gross domestic product, inflation and price levels. Macroeconomics is the branch of economics that studies the behavior and performance of an economy as a whole. What are the advantages of macroeconomics?

-it allows you to critically analyze the overall performance of a market structure. The government and national banks use macroeconomics to predict the effects of implementing new monetary and fiscal policies. GDP and GNP are important economic indicators that are also studied under macroeconomics. -As you advance in macroeconomics, you will learn how to draw the most aesthetically pleasing graphs - they not only look pretty, but allow you to predict the outcomes of certain variables on the economy. Macroeconomics is relavent - the hyperinflation in Zimbabwe, the soaring CDN dollar, last week's bank run in Britain - macroeconomics will help you to understand the variables behind these *thrilling* news stories! -Macroeconomics is the study of large economic systems, such as countries, and how they change over time in reaction to different stimuli. It differs from microeconomics in that it does not study the behaviors of individuals separately, but instead takes the behavior of large groups and tries to make predictions about the reactions to possible actions. In any macroeconomic model or theory, the value of it is in how accurately it predicts the future. What are the disadvantages of Macroeconomics?

-you're unable to study the economy on a smaller level - such as firms...
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