Macroeconomics

AAA

DEFINITION of 'Macroeconomics'

The field of economics that studies the behavior of the aggregate economy. Macroeconomics examines economy-wide phenomena such as changes in unemployment, national income, rate of growth, gross domestic product, inflation and price levels.

INVESTOPEDIA EXPLAINS 'Macroeconomics'

Macroeconomics is focused on the movement and trends in the economy as a whole, while in microeconomics the focus is placed on factors that affect the decisions made by firms and individuals. The factors that are studied by macro and micro will often influence each other, such as the current level of unemployment in the economy as a whole will affect the supply of workers which an oil company can hire from, for example.

VIDEO

Loading the player...
RELATED TERMS
  1. Underconsumption

    The purchase of goods and services at levels that fall below ...
  2. Macroeconomic Factor

    A factor that is pertinent to a broad economy at the regional ...
  3. Macro Environment

    The conditions that exist in the economy as a whole, rather than ...
  4. Classical Economics

    Classical economics refers to work done by a group of economists ...
  5. Macroprudential Analysis

    A method of economic analysis that evaluates the health, soundness ...
  6. Green Economics

    A methodology of economics that supports the harmonious interaction ...
RELATED FAQS
  1. What is the best way for my startup to have sustainable growth?

    Structural unemployment can last forever in theory, if efforts are not made to transform the workforce to meet the needs ... Read Full Answer >>
  2. What are the SEC regulations regarding a share premium account?

    Historically, because people in the United States have shown a higher propensity to consume, this is likely the more important ... Read Full Answer >>
  3. What goods and services do command economies produce?

    A command economy is an economic system in which the government, or the central planner, determines what goods and services ... Read Full Answer >>
  4. What's the difference between Porter's 5 forces and SWOT analysis?

    Porter's five forces and SWOT analysis are both tools commonly used by companies to conduct analyses and make strategic decisions. ... Read Full Answer >>
  5. What macroeconomic problems do policy makers most commonly face?

    Macroeconomics addresses large-scale economic factors that affect the overall population. Policymakers therefore have to ... Read Full Answer >>
  6. How do I differentiate between micro and macro economics?

    Microeconomics is the field of economics that looks at the economic behaviours of individuals, households and companies. ... Read Full Answer >>
  7. What is general equilibrium theory in macroeconomics?

    General equilibrium theory is a macroeconomic theory that explains how supply and demand in an economy with many markets ... Read Full Answer >>
  8. What is the difference between Keynesian and Neo-Keynesian economics?

    Classical economic theory presumed that if demand for a commodity or service was raised, then prices would rise correspondingly ... Read Full Answer >>
Related Articles
  1. Economics

    Macroeconomics

    Macroeconomics studies the performance of an economy as a whole. While microeconomics focuses on the decisions, spending and performance of individuals or single businesses, macroeconomics focuses ...
  2. Economics

    Is Your Stock Headed South?

    Don't let your portfolio go with it! Find out which signs to watch out for.
  3. Economics

    Earnings Guidance: Can It Accurately Predict The Future?

    Explore the controversies surrounding companies commenting on their forward-looking expectations.
  4. Active Trading

    Leading Economic Indicators Predict Market Trends

    Leading indicators help investors to predict and react to where the market is headed.
  5. Professionals

    Becoming A Financial Analyst

    A career as a financial analyst requires preparation and hard work, but the payoff can be especially rewarding.
  6. Economics

    The Uncertainty Of Economics: Exploring The Dismal Science

    Learning about the study of economics can help you understand why you face contradictions in the market.
  7. Options & Futures

    Explaining The World Through Macroeconomic Analysis

    From unemployment and inflation to government policy, learn what macroeconomics measures and how it affects everyone.
  8. Economics

    The Importance Of Inflation And GDP

    Learn the underlying theories behind these concepts and what they can mean for your portfolio.
  9. Personal Finance

    Microeconomics

    This tutorial teaches the basics of one of the most important economic topics. A must for all investors.
  10. Personal Finance

    How Basel 1 Affected Banks

    This 1988 agreement sought to decrease the potential for bankruptcy among major international banks.

You May Also Like

Hot Definitions
  1. Stop-Loss Order

    An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit ...
  2. Covered Call

    An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset ...
  3. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
  4. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
  5. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random ...
  6. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
Trading Center