Question

In two to three sentences, explain the statement: "Macroeconomics is about the bigger picture."

Answer 1

Answer:

Macroeconomics uses a top-down approach conceiving the economy as a whole

Explanation:

Macroeconomics ponderates the behavior of a national unit and how its policy reflects on the economic level. The scope is the industries, economic sectors instead of specific companies or individuals that are still present. Yet the questions to be answered are:

What would the rate of inflation be given that....? or What will rise or hinder economic growth when.....?

Macroeconomics can measure how increasing or limiting net exports will affect a nation's capital account, and how this gross domestic product (GDP) will be changed by the unemployment rate

Macroeconomics use aggregates and bases on econometric variables; variables used by the government to fund a new economic or fiscal policy

 

Answer 2

Macroeconomics involves the study of aggregate factors such as employment, inflation, and gross domestic product, and evaluating how they influence the economy as a whole