What is macroeconomics?

Macroeconomics​ (from Greek prefix "macros-" meaning "large" + "economics")

is a branch of ​economics​ dealing with the performance, structure, ​behavior​, and
decision-making of the whole ​economy​. This includes national, regional, and
global economies. With ​microeconomics​, macroeconomics is one of the two most
general fields in​ economics​.

Define macroeconomics.

Macroeconomics​ is the study of the entire ​economy​ in terms of the total amount of
goods and services produced, total income earned, the level of employment of
productive resources, and the general behavior of prices. Macroeconomics can be
used to analyze how best to influence policy goals such as ​economic growth​, ​price
stability​, ​full employment​ and the attainment of a sustainable ​balance of payments​.

What's the difference between macroeconomics and

microeconomics?
● Microeconomics is generally the study of individuals and business decisions;
macroeconomics looks at higher up country and government decisions.
● Microeconomics​ is the study of decisions that people and businesses make
regarding the allocation of resources and prices of goods and services. This
means also taking into account taxes and regulations created by
governments. Microeconomics focuses on ​supply​ and ​demand​ and other
forces that determine the price levels seen in the economy.
● Macroeconomics​, on the other hand, is the field of economics that studies
the behavior of the economy as a whole and not just on specific companies,
but entire industries and economies. This looks at economy-wide
phenomena, such as ​Gross National Product​ (GDP) and how it is affected by
changes in unemployment, national income, rate of growth, and price levels.
● While these two studies of economics appear to be different, they are
actually interdependent and complement one another since there are many
overlapping issues between the two fields. For example, increased inflation
(macro effect) would cause the price of raw materials to increase for
companies and in turn affect the end product's price charged to the public.
● The bottom line is that microeconomics takes a ​bottoms-up​ approach to
analyzing the economy while macroeconomics takes a ​top-down​ approach.
Regardless, both micro- and macroeconomics provide fundamental tools for
 any finance professional and should be studied together in order to fully
understand how companies operate and earn ​revenues​ and thus, how an
entire economy is managed and sustained.
Importance of macroeconomics:
The theoretical and practical importance of macro economics is briefly discussed
as:
1. it is helpful in understanding the functioning of macro economics system.
2. It explains the factors which determine the level of national income and
employment in an economy.
3. It explains the circular flow of national income in an economy.
4. It explains the problem of unemployment which is a main problem of
developing countries.
5. It explains the various aspects of international trade such as terms of trade
balance of payments, foreign exchange etc.
6. It studies the causes of fluctuations in the business cycle and to formulate the
policies to control inflation and deflation.
7​. To understand the working of economy:-Macroeconomics gives bird’s
eye view of the economic world. It helps in understanding how the
macroeconomic variables behave in the aggregate. Study of the
national income, aggregate output, gross saving and output, national
expenditure is very essential to understand the working of the economy.
8. Helpful in formulation of economic policies:-Macroeconomic analysis
provides a sound basis for the formulation of government’s economic
policy. The economic policies for the removal of poverty, employment and
price stabilization must be based upon reliable statistics of the aggregate
variables.
9. Helpful in controlling economic fluctuations:-Economic fluctuations
like trade cycle, inflation, deflation etc. need to be handled appropriately in
appropriate period to correct them. This will give a finite direction to the
economy. For this the knowledge of macroeconomics is essential.
10. Helpful in international comparisons:-Only macroeconomic variables
like national income, total output, aggregate demand, and consumption
behavior and investment patterns of different countries can be easily
compared. Macroeconomics provides the necessary information for this.
11. National Income:-National income is the barometer that scales the
growth of a country. It analyses the overall performances of the economy
within a given period of time and allow us to compare that performance
with the post. National income, basically, is an aggregate concept. Thus,
macroeconomics studies about the problems of unemployment, inflation,
economic instability and economic growth. It also enriches our knowledge
of functioning of the whole economy by studying the behavior of
national income, output, investment, saving, and consumption.