Macroeconomics is a term we hear a lot these days. However, what is the definition and example of macroeconomics and how is it different from microeconomics?
Basically, macroeconomics is a term in economics or a branch of economics. Macroeconomics will study problems in the economy as a whole.
In this science, there are many problems that are discussed. How are you? Check out the full review below, including how it differs from microeconomics.
What is Macroeconomics?
As mentioned above, macroeconomics is a science that studies economics comprehensively or comprehensively. In this study, we will try to measure the performance of the economy in order to find out the forces that drive it and find ways to project so that its performance can increase.
This branch of economics will be concerned with the structure, performance, behavior, and economic decision making, both comprehensively (aggregate). Therefore, this branch of economics is often used as an instrument in order to analyze and design a series of policy targets related to the above matters.
Meanwhile, microeconomics itself focuses more on individual economic units. Therefore, in short it can be said that macroeconomics will focus on discussing economic problems in total, while microeconomics is the opposite.
So, what are the differences between these two branches of economics? Check out the explanation below.
Difference Between Micro and Macroeconomics
At least, the difference between micro and macro economics can be drawn from two things, namely as follows.
Based on the emphasis of the discussion theme
The first difference between these two branches of economics can be seen from the way economists emphasize the theme of their discussion.
This is because macroeconomics is more focused on the behavior of economic agents as a whole or in the aggregate, while microeconomics will emphasize the analysis of individual behavior (individuals).
We can also draw a distinction between microeconomics and macroeconomics in terms of the assumptions used.
In microeconomic theory, it is known that the assumption is that the market structure is a form of perfect competition. In theory, this economic problem is only on the supply side.
In contrast to that assumption, in macroeconomics, the assumption is that the market structure has a monopolistic tendency with imperfect and asymmetric information. In macroeconomic theory too, money is not only considered as a means of transaction.
Indeed, macroeconomics has many purposes and it will affect the economy of a country. Each goal is intended as an effort to solve problems that arise. Here are some important macroeconomic goals to know.
Increased job opportunities
Increasing employment is the goal of the policies produced in macroeconomics. That way, the state will be able to reduce and suppress the unemployment rate.
Of course, a high unemployment rate will have a negative impact on a country, which then also becomes a burden for the country’s economy.
National income level
The next goal is to achieve a high level of national income. As is known, with the high level of national income, it also reflects the increasing number of goods and services produced by the economy.
Thus, the prosperity and per capita income of a country will also increase.
In this case, there are several economic stability that can be achieved by implementing macroeconomics, including stability in income levels, employment opportunities, and the level of prices of goods in the market.
Creating economic growth
Automatically, of course, high economic growth will also increase the national income of a country. Thus, economic activity also increases in the long term.
Generally, the occurrence of an even distribution of income is judged to be in line with a fair distribution of income. Basically, income distribution is something a country really hopes for, which in turn can realize the prosperity of society.
Below are examples of macroeconomics that are usually studied in macroeconomic theory. It is also important to note, in macroeconomics, the analysis to be used will usually be much more complex than in microeconomic theory.
Here are a series of examples:
- The unemployment rate of a country, especially those of working age
- The country’s economic growth every quarter of the year
- Job opportunities provided by the government
- National income
- Economic policies issued by the government
- Cooperation between one country and another, especially in the economic field
- International economic organization
- Export and import
- A country’s government investment
- Income per capita in terms of GDP and investment
- Country’s balance of payments
Do you know now the definition and examples of macroeconomics, including the difference between microeconomics and microeconomics? Well, to access other articles about the crypto world, you can listen to the latest reviews from Indodax Academy.