When you study macroeconomics, you are exploring how the economy as a whole works. It’s not about how an individual makes decisions, for example, about consumption. But it’s about how everyone in a country makes decisions about consumption.
Macroeconomics studies the structure, trends, and how the economy functions. It does not address the behavior of individual economic agents as discussed in microeconomics. It also does not address economic decisions made by individuals or companies.
If you study this discipline, you will find no answers to questions like will consumer demand decrease if car manufacturers increase prices? Or, how sensitive is oil price to fertilizer companies?
What is macroeconomics?
Macroeconomics is a branch of economics besides microeconomics. Different from microeconomics, it examines the economy as a whole. It addresses demand, supply, and prices, but in aggregate.
In it, you will study concepts such as how to measure aggregate economic activity. How does it fluctuate in the short term? Ups and downs will have a significant impact on our lives. It affects economic growth, unemployment, and inflation.
Here, you will also explore what determines economic growth. Why can a resource-poor country like South Korea become a developed country?
Apart from the real sector, you will learn more about money, but again in aggregate. You can find it in the monetary section.
Macroeconomics also deals with how countries interact with each other. Why can a crisis in one country spread to other countries? It becomes more and more relevant as globalization. International trade and capital flows have been increasing. You will find these transactions, trade, and capital in the section on the balance of payments.
Topics on Macroeconomics
- Absolute Advantage
- Aggregate Demand
- Aggregate Expenditure
- Aggregate Income
- Aggregate Output
- Aggregate Supply
- Austerity Policy
- Austrian School of Economics
- Autarky
- Autonomous Expenditure
- Business Cycle
- Business Cycle
- Capital Flow Control
- Circular Flow of Income
- Closed Economy
- Common Market
- Comparative Advantage
- Cost-Push Inflation
- Currency
- Currency Appreciation
- Currency Crisis
- Currency Depreciation
- Customs Union
- Cyclical Budget Deficit
- Cyclical Unemployment
- Deflation
- Demand-pull inflation
- Disinflation
- Economic Contraction
- Economic Crisis
- Economic Depression
- Economic Development
- Economic Growth
- Economic indicators
- Economic Recession
- Economic Union
- Exchange Rate
- Exchange Rate System
- Exports
- Fiat Money
- Fiscal Policy
- Foreign Investment
- Free Trade Area
- Frictional Unemployment
- Government Budget
- Government Debt
- Government Expenditure
- Government Revenue
- Gross Domestic Product (GDP)
- Gross National Income
- Gross National Product
- Harrod-Domar Model
- Hidden Unemployment
- Hyperinflation
- Import
- Import Quota
- Import Tariff
- Income Distribution
- Income Distribution
- Inflation
- Inflation Rate
- Injections and Leakages
- International Trade
- Labor Force Participation Rate
- Liquidity Trap
- Loanable Funds Market
- Macroeconomic Equilibrium
- Macroeconomic Sector
- Monetarist School of Thought
- Monetary Policy
- Money
- Money Supply
- National Debt
- National Savings
- Neoclassical Economics
- Nominal GDP
- Non-tariff Barriers
- Potential GDP
- Real GDP
- Regional Trade Agreement
- Sovereign Debt
- Spot Exchange Rate
- Structural Budget Deficit
- Supply-Side Policy
- Terms of Trade
- Trade Balance
- Trade Barriers
- Trade Blocs
- Trade Deficit
- Trade Protection
- Trade Protection
- Trade Restriction
- Trade Surplus
- Unemployment Rate
- Voluntary Unemployment
Latest Articles on Macroeconomics
- Economic Growth and Economic Development: Their Differences and Relationships
- Where Do Comparative Advantages Come From?
- Three Injections In The Economy
- How Do Imports Impact the Economy?
- What Are the Factors Affecting Imports?
- Reasons Why International Trade Exists
- What are the Benefits of International Trade?
- Autarky: Examples, Pros, and Cons
- Adverse Economic Shocks: Examples, Impacts, Solutions
- Wage Rigidity: Reasons and Implications
- Natural Rate of Unemployment: The Explanation
- Consumption Expenditure: Type, Determinants, Impact