What is the primary focus of macroeconomics?

The primary focus of macroeconomics is the behavior of an economy as a whole. This field analyzes large-scale economic factors such as national income, overall output, employment rates, inflation, and economic growth. By studying aggregate indicators and general principles, macroeconomics seeks to understand how different sectors interact and affect overall economic performance.

While individual markets, financial institutions, and international trade regulation are important aspects of economics, they fall within the realm of microeconomics or specialized fields. Macroeconomics, on the other hand, provides a broader perspective, allowing economists to formulate policies that can stabilize or stimulate the economy during different phases of the economic cycle. Understanding macroeconomic trends is crucial for policymakers, businesses, and investors as they make decisions that can influence or be influenced by the larger economy.