Macroeconomics

Macroeconomics is the branch of economics that studies the overall performance and behavior of an economy as a whole, rather than individual markets or firms.

It focuses on big-picture economic issues such as growth, inflation, employment, and national income.

Key objectives of macroeconomics

Economic growth – increasing a country’s output and income
Price stability – controlling inflation
Full employment – reducing unemployment
Economic stability – minimizing business cycles and crises

Major macroeconomic policies

1. Fiscal policy

Government spending and taxation
Used to stimulate or slow down the economy
Managed by the government

2. Monetary policy

Control of money supply and interest rates
Implemented by the central bank
Tools include interest rates, open market operations, reserve requirements

Key takeaway

Macroeconomics helps governments, businesses, and investors understand economic trends and make informed decisions.