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Macroeconomics

Macroeconomics

This is a section of economic theory that studies the functioning of the economy as a whole, the economic system as a whole, the totality of economic phenomena.

Macroeconomics as a science was born relatively recently. Until the 1930s, the very term "macroeconomics" simply did not exist as such. From 1940 to 1977 there was a "consolidation" of this science, and from the 1980s and later, the fruitful development of macroeconomics began. Despite this, even from earlier times, more and more new macroeconomic ideas have been developed that explain the behavior of the economy, the reasons why one or another economic policy should or should not be used for its development, the difference between long-term and short-term periods in the economy, and other factors. . Some of them contradicted each other. Thus, many supporters of various macroeconomic ideas appeared; entire schools of macroeconomic thought emerged.

The science of macroeconomics deals with questions that cannot be answered at the microeconomic level: the problems studied by macroeconomics are common to the economy as a whole.

Macroeconomic issues include:
  1. Economic growth, economic cycles: What is economic growth? How to determine the rate of economic growth? What factors can influence economic growth? How does economic growth affect the development of the country in question?
  2. Unemployment: Who are the unemployed? Is unemployment good or bad for the economy? How to deal with unemployment? How can you determine the different levels of unemployment in a country? What is the impact of unemployment?
  3. General price level: What is meant by the general price level? How do changes in the price level affect the state of the economy? What is inflation? Which inflation is good and which is bad?
  4. Money circulation, interest rate level: What is the role of money in macroeconomics? What affects the general interest rate and what does it affect in the economy?
  5. State budget: How does the state regulate its revenues and expenditures? How do such criteria as the well-being of society or the development of business in the country depend on changes in the state budget?
  6. Balance of trade: How does a country trade internationally with other countries? How do changes in exports and imports affect the exchange rate, the development of the country in question, the state of the world economy?

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