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What is Macroeconomics?

Macroeconomics

About Macroeconomics

What is Macroeconomics?

Macroeconomics: Definition

Macroeconomics is a branch of economics that deals with how an economy functions on a large scale. It differs from microeconomics, which deals with how individual economic players, such as consumers and firms, make decisions.

What is macroeconomics?

Macroeconomics is concerned with understanding economy-wide events such as the total amount of goods and services produced, the level of unemployment, and the general behaviour of prices. The objective of macroeconomic study is to investigate principles, problems, and policies related to achievement of full employment and expansion of production capacity. It deals with how different economic sectors such as households, governments and industry make their decisions.
Macro economists employ aggregate measures such as gross domestic product (GDP), unemployment rates, and the consumer price index (CPI) to analyse large-scale consequences of individual decisions. The two main areas of macroeconomic research are long-term economic growth and shorter-term business cycles.
Over the years many economists revolutionised macroeconomic thinking with their ideas. The classical school of economic thought believed that market forces would correct problems such as rising unemployment and recessions and any intervention by the government would be counter-productive.
However, during the Great Depression of the 1930s, existing economic theory was unable either to explain the causes of the severe worldwide economic collapse or to provide an adequate policy solution to jump-start production and employment. British economist John Maynard Keynes overturned the then-prevailing idea that free markets would automatically provide full employment.

What is Keynesian theory?

Keynes's theory or the Keynesian theory argues that state intervention is necessary to moderate the booms and busts in economic activity, otherwise known as the business cycle. Keynes ushered in a new era of macroeconomic thought that viewed the economy as something that the government should actively manage. Several schools of thought have developed since including the monetary model of macroeconomics and rational-expectations hypothesis.

Latest Updates on Macroeconomics

Macroeconomic data, global trends to drive mkt trends this week: Analysts

2 min read Last Updated :Mar 10 2024 | 10:30 AM IST
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Metal prices unlikely to improve due to global macroeconomic state: ICRA

1 min read Last Updated :Jan 03 2024 | 4:34 PM IST
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Oil drops 2% as markets mull OPEC+ cuts' efficacy, macroeconomic slowdowns

3 min read Last Updated :Dec 06 2023 | 9:59 PM IST
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Fed rate decision, macroeco data, earnings to dictate mkt trends: Analysts

2 min read Last Updated :Oct 29 2023 | 10:32 AM IST
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China's CLSA ups India exposure on supportive macroeconomic outlook

2 min read Last Updated :Oct 11 2023 | 12:52 PM IST
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Top IT cos log muted sequential growth in Q2 amid sustained macro overhang

4 min read Last Updated :Oct 08 2023 | 1:41 PM IST
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Poor performance of public entities a risk to fiscal outlook: Pak FinMin

5 min read Last Updated :Sep 02 2023 | 6:53 PM IST
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IT firms' growth in Q1 FY24 lowest in 10 qtrs, slowdown to get worse: ICRA

3 min read Last Updated :Aug 29 2023 | 4:13 PM IST
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Macroeconomic, geopolitical conditions pose risks to organisations: Survey

3 min read Last Updated :Jul 27 2023 | 12:54 PM IST
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BFSI, tech clients spending more on cost-optimisation deals: Wipro chairman

2 min read Last Updated :Jul 12 2023 | 12:31 PM IST
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Weak discretionary spend likely to weigh on IT cos' revenue in Q1

4 min read Last Updated :Jul 02 2023 | 3:30 PM IST
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FPIs invest Rs 37,316 cr in May on strong domestic macro fundamentals

3 min read Last Updated :May 28 2023 | 11:56 AM IST
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Private equity inflows plunge over 75% to $2.2 bn in March quarter: Report

3 min read Last Updated :Apr 11 2023 | 5:38 PM IST
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Japan books $16.6 bn current account surplus for 2nd consecutive month

1 min read Last Updated :Apr 10 2023 | 2:35 PM IST
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Global cellular IoT module shipments grew by 14% in 2022, says report

2 min read Last Updated :Mar 29 2023 | 5:58 PM IST
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G20 Framework Working Group meeting to discuss macro-economic issues: CEA

2 min read Last Updated :Mar 23 2023 | 7:17 PM IST
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Strong macroeconomic trends improve credit quality of finance cos: S&P

1 min read Last Updated :Mar 13 2023 | 2:29 PM IST
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India's macro stability indicators to improve in FY24: Morgan Stanley

2 min read Last Updated :Mar 03 2023 | 2:55 PM IST
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Top VC firms reduce investments in India amid macroeconomic uncertainty

6 min read Last Updated :Feb 12 2023 | 4:50 PM IST
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Certainly, uncertainty has declined

6 min read Last Updated :Feb 05 2023 | 11:24 PM IST
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