Answer to Question #302699 in Macroeconomics for leg piece

Question

Define Macroeconomics and shortly explain main issues of Macroeconomics?

Answer 1

Macroeconomics is the branch of economics that deals with the arrangement, performance, practice, and decision-making of the whole economy.

The main issues of macroeconomics include

Economic Growth

This is the trend of the total output of a country's nation’s total output over the long period.

Business Cycles

This refers to frequent fluctuation of business activities in the economy. Business activities are unable be predicted.

Inflation

This is a situation where there is a constant increase in prices of commodities and their factors of production above the purchasing power of consumers.

Unemployment

Unemployment refers to a state where people who are capable of working have no jobs.

Interest Rates

This is the rate at which a countries' economic activities are exchanged for another currency.

Balance of Payments

This is a record of all economic activities of a country in relation to those of other countries globally. These transactions are largely, if not entirely, influenced by the exchange rate. It is the rate at which a country’s economy is exchanged for another currency.