Macroeconomics looks to study how the separate elements of the economy behave as one whole entity. A wide variety of economic phenomena are examined in Macroeconomics, including inflation, price levels, national income, rate of growth, gross domestic product (GDP) and changes in employment rates.
For those who wish to work within the field of Macroeconomics, you’ll study aggregated indicators, mentioned above, and relate them to one another in order to gain a greater understanding on how the economy functions.
Macroeconomists aim to develop models that help explain the relationships between several factors. These include inflation, savings, consumption, investments, finance and international trade, and national income and output. These models are used by the government and their entities to help develop, build and issue new or existing economic policy.
Despite itself being a sub-category of a core subject, Macroeconomics is a rather broad field. There are two specific areas of research that are predominantly representative of the discipline, however. One area is the process of understanding the cause and consequence of short-term fluctuations in national income, which is also known as the business cycle. The other area attempts to gain an understanding of the elements that determine long-term economic growth, or increases in national income.
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