Macroeconomics

Definition of 'Macroeconomics'


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. 

Investopedia explains 'Macroeconomics'


Macroeconomics is focused on the movement and trends in the economy as a whole, while in microeconomics the focus is placed on factors that affect the decisions made by firms and individuals. The factors that are studied by macro and micro will often influence each other, such as the current level of unemployment in the economy as a whole will affect the supply of workers which an oil company can hire from, for example.

Introduction to Macroeconomics

1. An Overview of Macroeconomics


1. What Is Macroeconomics
2. Macroeconomic Goals
A. Low Unemployment Rate
B. Price Stability
1. Inflation and Deflation
2. Changes in Purchasing Power and Uncertainty
3. Interest Rate
C. Economic Growth
1. Measuring Total Output
2. Correcting for Price Inflation
3. Cycles in Economic Growth
D. Complementary and Conflicting Goals
3. Key Principles of Economics
A. Limited Resources, Unlimited Wants, Scarcity, and Opportunity Cost
1. Resources and the Production Process
2. Scarcity, Choice, and Opportunity Cost
3. Economic Goods Versus Free Goods
4. Examples of Opportunity Costs
5. Allocation of Scarce Resources - the Role of Prices
B. Individual Behavior and Rational Self-Interest
C. Relationship Between Opportunity Cost and Rational Self-Interested Behavior
D. Decisions Are Made at the Margin
3. Economic Theory in Practice
A. Economic Theory and Models
B. Empirical Applications
C. Normative Versus Positive Economics