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.


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BREAKING DOWN '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.

  1. Gross Domestic Product - GDP

    The monetary value of all the finished goods and services produced ...
  2. Underconsumption

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

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

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

    Classical economics refers to work done by a group of economists ...
  6. Microeconomics

    The branch of economics that analyzes the market behavior of ...
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