Explain the scope of macroeconomics

Macroeconomics is a branch of economics that studies aggregates covering the entire economy. It studies total employment, national income, national output, aggregate demand, aggregate supply, aggregate consumption and savings and total investment. It studies the entire economy in the context of equilibrium. It studies the behaviour of a number of economic variables at a time and takes into consideration their functional relationship and interdependence. Thus, it can be concluded that macroeconomics deals with the economy as a whole.

Macroeconomics is concerned with large sections of the economy or the economy as a whole. It is a branch of economics that studies economics activities of various economic spheres and analyses economic situations and economic problems of the economy as a whole. Microeconomics, on the other hand, studies only one consumer or one producer. In other words, while microeconomics studies individual economic units, on the other hand, macroeconomics studies aggregates. Accordingly, microeconomics is based on partial equilibrium analysis, on the other hand, macroeconomics is based on general equilibrium analysis. In this regard, it can be said that macroeconomics has a wider scope than microeconomics.