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What are the components of macroeconomics?

Economics

What are the components of macroeconomics?

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The most important components of macroeconomics are the following:

  • Unemployment: Macroeconomics study different factors determining the level of unemployment like effective demand, aggregate supply, consumption of households, etc.
  • Money: Macroeconomics examines the factors affecting the demand and supply of money. It also analyzes the function of money and theories related to it.
  • National Income: The most important component of macroeconomics is to study the factors affecting the national income of a country like government expenditures, net exports, consumption, etc.
  • Inflation: Determination of the factors affecting the general price level is also studied by macroeconomics.