Macroeconomics

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.