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Macroeconomics is a discipline of economics that examines an economy's overall performance, structure, and behavior rather than just certain markets or enterprises. It examines the broad range of economic factors that affect an economy's overall performance, including GDP, inflation, unemployment, interest rates, and governmental policies.
Understanding these relationships and how they impact economic growth, stability, and development are central to macroeconomics. It aims to shed light on the reasons behind oscillations in output, income, and employment as well as the effects that these variations have on the economy as a whole.
Microeconomics, a field that focuses on the market behavior of small businesses and consumers, is the foundation upon which macroeconomics is based. Macroeconomics, on the other hand, concentrates on the collective behavior of the economy as a whole, whereas microeconomics focuses on the choices and interactions of individual individuals.
Macroeconomic theory and macroeconomic policy are the two primary subfields in the field of macroeconomics. While the macroeconomic policy is concerned with planning and implementing government policies to attain specific macroeconomic goals, such as full employment, price stability, and economic growth, macroeconomic theory aims to create models and frameworks for evaluating the behavior of the economy.
The field of macroeconomics has a number of schools of thought, each having a distinct theoretical base and political ramifications. Among these are new classical economics, new Keynesian economics, monetarism, and classical and Keynesian economics. Every one of these methods has a unique viewpoint on how the economy functions and what policies are required to achieve macroeconomic stability and growth.
