Macro
Macro is a term used to describe the big picture of the economy. It is a way of looking at the overall performance of the economy, including the growth of the economy, the rate of inflation, and the level of unemployment. Macroeconomics is the study of how the overall economy works and how it is affected by changes in government policies, international trade, and other factors. Macroeconomics is concerned with the aggregate performance of the economy, such as the total amount of goods and services produced, total income earned, and total employment.
History of Macro
The term macroeconomics was first used by John Maynard Keynes in his 1936 book The General Theory of Employment, Interest and Money. Keynes was a British economist who developed a theory of macroeconomics that focused on the aggregate performance of the economy. Keynes argued that government policies, such as fiscal and monetary policies, could be used to influence the performance of the economy. His theories were influential in the development of modern macroeconomics.
Since the publication of Keynes’ book, macroeconomics has become an important field of study. Macroeconomists study the performance of the economy as a whole, as well as the behavior of individual markets. They use economic models to analyze the effects of government policies, international trade, and other factors on the performance of the economy. Macroeconomists also study the effects of economic shocks, such as recessions, on the performance of the economy.
Comparison Table
| Macro | Micro |
|---|---|
| Focuses on the overall performance of the economy | Focuses on the behavior of individual markets |
| Uses economic models to analyze the effects of government policies | Uses economic models to analyze the behavior of individual markets |
| Studies the effects of economic shocks on the performance of the economy | Studies the effects of economic shocks on individual markets |
Summary
Macroeconomics is the study of the overall performance of the economy, including the growth of the economy, the rate of inflation, and the level of unemployment. It is concerned with the aggregate performance of the economy, such as the total amount of goods and services produced, total income earned, and total employment. Macroeconomists use economic models to analyze the effects of government policies, international trade, and other factors on the performance of the economy. For more information about macroeconomics, visit websites such as the Federal Reserve Bank of St. Louis, the International Monetary Fund, and the World Bank.
See Also
- Microeconomics
- Gross Domestic Product (GDP)
- Inflation
- Unemployment
- Monetary Policy
- Fiscal Policy
- International Trade
- Economic Shocks
- Economic Models
- Keynesian Economics
