Macroeconomics

Economics is the study of the allocation of scarce resources and the results of different allocations. As we have seen in previous articles, (Understanding Microeconomics), this can be at an individual level but it can also be on a much larger scale, which we will look at in this article. Macroeconomics looks at aggregate levels of supply and demand and often looks specifically at growth and unemployment as well as inflation and interest rates. Analysis of such metrics is key to the formulation of government policy and decision-making as they seek to ensure prosperity for their nation and avoid an economic downturn.