Macroeconomics is a branch of economics that deals with the behavior of the economy as a whole. Thus, the behavior of the external economic environment that surrounds us all. The opposite is microeconomics, which focuses on studying the economics of individual entities - companies or individuals.
Macroeconomics in practice: Macroeconomics focuses on forecasts, trends and relationships between macroeconomic variables such as gross domestic product, tax rate, unemployment rate, inflation / deflation, economic cycle, government budgets, exchange rates and more.
Patterns of behavior and mutual influences of these factors are very complicated and not clear. Therefore, there are more opinions macroeconomic trends (schools), which differ in explaining the context, causes and consequences of macroeconomic phenomena in the behavior of the economy as a whole. Among the best known and most widely used macroeconomic schools include:
- Classical economics
- Neoclassical economics
- Neo-Keynesianism and more.
Knowledge of macroeconomic context helps organizations to assess the outside world. This is especially important when deciding on marketing and sales, and even in the strategic management of the company.