Description

Description: The course demonstrates how to use macroeconomic indicators such as: GDP; economic growth; inflation; unemployment; aggregate demand and supply; GDP; employment and inflation to analyse and evaluate the macroeconomic factors that affect the economic wellbeing of stakeholders in the market system.

Background: Macroeconomics is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole, rather than individual markets. This includes national, regional, and global economies.

Macroeconomists study aggregated indicators such as GDP, unemployment rates, and price indices to understand how the whole economy functions. Macroeconomists develop models that explain the relationship between such factors as national income, output, consumption, unemployment, inflation, savings, investment, international trade and international finance.

Macroeconomics vs. Microeconomics
Microeconomics focuses on the market’s supply and demand factors that determine the economy’s price levels. In other words, microeconomics concentrates on the ‘ups’ and ‘downs’ of the markets for services and goods, and how the price affects the growth of these markets. An important aspect of this economy is also to examine market failure, i.e. when the markets do not provide effectual results. In our present time, microeconomics has become one of the most important strategies in business and economics. Its main importance is to analyze the economic forces, consumer behavior, and methods of determining the supply and demand of the market.

On the other hand, macroeconomics studies similar concepts, but with a much broader approach. The focus of macroeconomics is basically on a country’s income, and the position of foreign trades, with the study of unemployment rates, GDP and price indices. Macroeconomists are often found to make different types of models, and relationships, between factors such as output, national income, unemployment, consumption, savings, inflation, international trade, investment, and international finances. Overall, macroeconomics is a vast field that concentrates on two areas, economic growth and changes in the national income.

While the two studies are different, with microeconomics focusing on the smaller business sectors, and macroeconomics focusing on the larger income of the nation, they are interdependent and work in harmony with each other. The main differences are:

1. Microeconomics focuses on the market’s supply and demand factors and determines the economic price levels.
2. Macroeconomics is a vast field, which concentrates on two major areas, increasing economic growth and changes in the national income.
3. Microeconomics facilitates decision making for smaller business sectors.
4. Macroeconomics focuses on unemployment rates, GDP and price indices, of larger industries and entire economies.

Microeconomics and macroeconomics are the fundamental tools to be learned, in order to understand how the economic system is administered and sustained.