Macroeconomics is a branch of economics which is concerned with the behavior of the aggregate economy. The study seeks to understand the cause and possible solutions to various economic problems such as inflation, unemployment, and economic growth. Macroeconomics also determines the performance of the economy and further analyzes the main drivers of economic growth.

Macroeconomics is primarily concerned with the bigger picture of the overall economy. The branch of economics analyzes how different economic sectors relate as well as their influence on the aggregate economy. Notably, the relationship of the various sectors is better understood with the help of economic models which use economic forecasts. The study helps economists to come up with ideal solutions to broad issues affecting the economy. Some of the solutions include the use of fiscal and monetary policies to promote economic growth, reducing levels of unemployment, and dealing with inflation. Macroeconomics differs from microeconomics in that the former studies the performance of the aggregate economy, while the latter is limited to the behavior of households and firms.