Macroeconomic Theory

Macroeconomic theory studies how the overall economy functions, including factors like gross domestic product (GDP), unemployment, inflation, and government policies. It aims to understand how these elements interact and influence economic growth and stability. By analyzing aggregate demand and supply, monetary and fiscal policies, and international trade, macroeconomic theory helps explain trends, guide policymaking, and address issues like recession or inflation. Essentially, it provides a broad perspective on how the economy operates as a whole, rather than focusing on individual markets or businesses.