What does macroeconomics study?

Macroeconomics primarily focuses on the study of economy-wide phenomena. This includes analyzing large-scale economic factors and overall trends that affect an entire economy rather than individual segments. Key topics within macroeconomics include inflation, which reflects the overall rise in prices of goods and services; unemployment, which indicates the number of people seeking work but unable to find it; and gross domestic product (GDP), which measures the total value of all goods and services produced in an economy.

In contrast to macroeconomics, other fields of economic study, such as microeconomics, examine the behavior and decisions of individual consumers and businesses, rather than broader economic factors. While local and national business trends can provide valuable insights into parts of the economy, they do not capture the broader generalities of economy-wide phenomena like inflation and overall employment. The financial activities of households are also a vital part of understanding the economy, but they typically fall under microeconomic analysis, as they focus on individual decision-making rather than the aggregate economic landscape.