Introduction to Macroeconomics

In this segment, you will see how an aggregated view of the economy helps governments and central banks with decision-making.

In the upcoming video, Chris will give you a macro view of the economy and explain how macroeconomics differs from microeconomics. So, let’s go ahead and watch the video.

So, in the video, you learnt that macroeconomics studies the behaviour and performance of an economy as a whole. Unlike microeconomics, it is not concerned with the individual elements in an economy but is concerned with the ‘macro’ view of the economy. You also learnt why macroeconomics needs to be studied independently as a subject.

So here we study changes that effect many households, many firms and  many markets simultaneously.

 Throughout this module, you will learn what makes macroeconomics so important and how macroeconomic decisions impact countries and their economies. In the next segment, you will learn about the circular flow of income from a macroeconomic perspective.