macroeconomic models

Macroeconomic models are mathematical frameworks used by economists to describe and predict how an economy functions as a whole. They analyze key variables like GDP, unemployment, inflation, and interest rates to understand relationships and economic behavior. These models can illustrate how policies, such as fiscal or monetary changes, impact economic growth and stability. By simulating different scenarios, they help policymakers make informed decisions to promote economic health and address issues like recessions or inflation, ultimately guiding efforts to improve the overall well-being of society.