Macroeconomics is a discipline of economics that studies the overall functioning and executions of the national economy encompassing its structure, behavior, decision making system and performance. Macroeconomics is made from macro (large) and economy i.e. the study of large economies such as regional, national or global economics. It deals with the national or global economy to studies the financial environment as a whole system.
Macroeconomics is the study of economics on a large scale and is focused on total investment, production, consumption, GDP, national income, output, price indexes, unemployment, inflation, international trade and finances. It also studies their interrelation in the context of the small economies as well as the big factors of the national economy to balancing all the factors so that overall economy can grow smoothly. It is a broad area of economics and provides basic data and qualitative and quantitative analysis to understand and determine the nature with characteristics of the whole economic system. Likewise macroeconomics is also used to prepare and decide new monetary policies to accelerate the national economy.
Macroeconomics has its root in the term macro system which was used first time by Ragnar Frisch (Norwegian economist) in 1933. After that it took lot of efforts of many economists and management researchers (such as Mark Blaug, Knut Wicksell) to get the present structure. Macroeconomics also makes efforts to answer the questions of national economical importance as economic growth, fluctuation, recession periods and examines the circumstances to solve the problems of the whole economic system as a unit. It assumes the short economies as a part of the macroeconomic sphere and studies their interactive effects on one another to find out the main causes and responsible factors for the final progress of economy.
Macroeconomists use several statistical models and mathematical data analysis technique to find the primary and dominant factors behind the national or global economic scene. It also studies the behavior and effect of small economies to predict the wholesome effect on the gross economy.