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Introduction to Macroeconomics
Macroeconomics is a branch of economics dealing with the performance, structure, behavior and decision-making of the entire economy. This includes a national, regional, or global economy. With microeconomics, macroeconomics is one of the two most general fields in economics. Macroeconomists study aggregated indicators such as GDP, unemployment rates, and price indices to understand how the whole economy functions.
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Introduction to Macroeconomics
Macroeconomists develop models that explain the relationship between such factors as national income, out put, consumption, unemployment, inflation, savings, in vestment, international trade and international finance. In contrast, microeconomics is primarily focused on the actions of individual agents, such as firms and consumers, and how their behavior determines prices and quantities in specific markets.
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Introduction to Macroeconomics
While macroeconomics is a broad field of study, there are two areas of research that are emblematic of the discipline: the attempt to understand the causes and consequences of short-run fluctuations in national income (the business cycle), and the attempt to understand the determinants of long-run economic growth (increases in national income).
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Macroeconomic Concerns
Three of the major concerns of macroeconomics are:
Inflation.
Output Growth.
Unemployment.
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Unemployment
The unemployment rate is the percentage of the labor force that is unemployed. The unemployment rate is a key indicator of the economys health. The existence of unemployment seems to imply that the aggregate labor market is not in equilibrium. Why do labor markets not clear when other markets do?
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expectation of earning income, and also demand (borrow) funds from this market.
Firms, government, and the rest of the world
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sum of all the microeconomic decisions made by individual households and firms. We cannot understand the former without some knowledge of the factors that influence the latter.
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demand curves are more complex than simple market supply and demand curves.
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