What is meant by dynamic analysis in macroeconomics?

Macroeconomics involves the study of how the limited resources are utilized by a whole economy in production of goods and services for consumption. Economies can be those of state or even the world. The overall decisions concerning the economic factors affecting the whole economy are made. The economic factors affecting the state include the total national earning, the rate of employment, inflation and deflation rates and the total worth of the goods and services produced in the state among others.

Dynamic analysis in macroeconomics is a concept which refers to the study of a system of production in which the rate of output is varying. The economic measurements studied in dynamic analysis include the national income, the consumption and the investment in an economy. Time in dynamic analysis plays an important role in analyzing the movement of a measurement towards balance.