A Brief Introduction to Macroeconomics and Its Application

Mr. Yelahanka Lokesh

Abstract

An important area of economics called macroeconomics focuses on the analysis of overall economic performance and behaviour. It examines aspects of the economy as a whole, including factors like inflation, unemployment, economic growth, and governmental policies. The practical applications of macroeconomics in several branches of economics are examined in this chapter. First of all, macroeconomics serves as the basis for study of monetary and fiscal policy. Governments use fiscal policy, which includes taxing and expenditure, to affect total demand and maintain economic stability. Controlling the money supply, interest rates, and the availability of credit are the main objectives of monetary policy, which is carried out by central banks.