Macroeconomics – also called the theory of income and employment, macroeconomic theory or macro theory is part of economics. The macroeconomics is concerned with all participants in the market, such as households, enterprises, the state, the foreign countries and banks, and their mutual relations among themselves.

The main focus of the macroeconomics is:

  • national accounting, including the calculation of gross domestic product (GDP), income and expenditure of a State
  • the income and employment theory, what has changed in the situations in the labor market
  • the growth theory and business cycle theory, how does the economy and as extend the economic cycle

At the center of macroeconomic theory is the question:
“What role does the state play in the overall economy?”

The state aims to price stability, full employment, external balance (import-export ratio) and a light, steady Economic growth.

This is regulated by changes in taxes, interest rates, subsidies and other government expenditures.

Content in category Macroeconomics

  • Price reduction
  • Magical rectangle
  • inflation
  • Economy
  • Flexible and fixed exchange rates
  • National accounts
  • money
  • gross domestic product
  • Bruttosocial product
  • Nominal income
  • Real income
  • Trade barriers
  • Foreign exchange speculation
  • Purchasing power parity
  • Interest rate parity
  • Wage rate
  • Profit ratio
  • Transfer services
  • Exchange rate fluctuations


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