What does macroeconomics study?

Macroeconomics is a branch of economics that focuses on the overall functioning and phenomena of the economy as a whole rather than individual markets. It studies large-scale economic factors such as national income, total employment, inflation, economic growth, and the impact of government policies on the economic system. By examining these large-scale aggregates, macroeconomics aims to understand how economies operate and to make predictions about future economic performance.

In contrast to macroeconomics, the other aspects mentioned focus on more localized or specific economic activities. The study of individual consumer choices pertains to microeconomics, which looks at how consumers make decisions based on preferences and constraints. Similarly, small market transactions and specific industries fall under microeconomic analysis, which examines the behaviors of firms and consumers in specific markets. This distinction helps clarify that macroeconomics is integral to understanding broader economic trends that affect society at large, beyond individual behaviors and market-specific dynamics.