The subject of macroeconomics constitutes various branches that deal with the various problems:

? Economic Growth: The economic growth refers to the growth in the well-being of nation. The GDP of a nation is considered as the indicator of well-being. Macroeconomics deals with the factors or causes that widen the gap between the desired and the actual GDP. It also deals with the impacts that various growth rates can have on the economic structure or on the lives of individuals.

? Unemployment: Unemployment is the phenomenon which shows the number of individuals in the labor force who are willing and be able to work but have no job. It deals with the various theories which explain the variation in unemployment rate and its association with the other keys variables. It also studies the policies that can be used to reduce unemployment.

? Business cycles: It refers to the fluctuations experienced in output by the economy. The fluctuations can be of four types, namely, Recession, Boom, Recovery and Slump.

It also deals with the impacts of such downward or upward trends on the economic structure.

? Interest Rates: The rate of interest is the other key variable which is studied under macroeconomics. The rate of interest is associated with investment and consumption spending which are key ingredients of the aggregate demand and economic growth.

? Budget deficits: Budget deficit shows the excess of government expenditure on its revenue. The government spending helps in creating more jobs in the economy. The deficit incurred by the government is financed by either debt or money printing which imposes additional cost on the individuals in the form of tax and inflation increase, rate of interest changes. This will affect the saving and investment behavior of the individuals.