Concept of Macroeconomic Activity
Economics (Year 11) - Introduction to Macroeconomics
What is Macroeconomic Activity?
Microeconomics studies the behaviour of individual households or firms, and addresses the effect of demand and supply. Comparatively, Macroeconomics describes the study of the economy as a whole. It focusses on why the economy grows and why economic activity fluctuates over time. Economists are concerned with economic growth, inflation, unemployment and the government policies developed in response to those changes. An understanding of macroeconomic concepts allows people to understand economic events and explain how they affect our lives, jobs, income and businesses. Ultimately, it affects economic decisions and spending confidence. For students like you, understanding macroeconomics can influence when you should switch jobs, start looking for a house or when you should hit to stock market.