Economics Terms A-Z
You’ve all heard the term before, countless times no doubt. But what does it really mean? Well, the biggest clue is in the name. MACROeconomics is a branch of economics that looks at the economy as a whole, specifically, at its structure, performance, and behaviour. It does so by considering aggregate changes to phenomena like gross domestic product (GDP), inflation, price indices, national income and unemployment rates.
Macroeconomics seeks an understanding of exactly what drives an economy and how its performance can be improved. Its exponents, thus, are concerned with questions like: which factors cause unemployment? How can economic growth be stimulated? And what drives inflation? The models, theories, and forecasts that these interrogations throw up often inform governmental economic policy. So yes it’s pretty important.
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