Social

Science

What is Macroeconomics?
Macroeconomics (from the
Greek prefix makro- meaning
"large" and economics)
Is the branch of economics that
is concerned with the major,
general features of a countrys
economy, such as the level of
inflation, unemployment, or
interest rates.

Basic macroeconomic
concepts
Macroeconomics encompasses a
variety of concepts and variables,
but there are three central topics
for macroeconomic research.
Macroeconomic theories usually
relate the phenomena of output,
unemployment, and inflation.
Outside of macroeconomic
theory, these topics are also
important to all economic agents

Importance of
Macroeconomics:
The study of macroeconomics
allows us to better understand
what makes our economy grow
and what makes it contract.
A growing economy provides
opportunities for better lives,
while a contracting economy can
be disastrous for most everyone.
Macroeconomics provides the

Macroeconomic Goals

One objective of macroeconomics is

to develop better laws and
government policies to maximize
the welfare of society.
More specifically, economists focus
on several major goals, such as:
a low rate of unemployment
price stability
economic growth

What Macroeconomists Do?

Macroeconomists
1. Macroeconomic
forecasting
2. Macroeconomic
analysis
3. Macroeconomic
research

Issues Addressed by
Macroeconomists:

What causes unemployment?

Recessions are usually accompanied
by high unemployment: the number
of people who are available for work
and are actively seeking it but
cannot find jobs.
What causes prices to rise?
Total output is increasing because of
increasing population, i.e. the
number of available workers.
Increasing average labor
productivity: the amount of output
produced per unit of labor input.

THE END