What is the primary focus of macroeconomics?

Macroeconomics primarily focuses on the economy as a whole, examining aggregate indicators and the broader economic factors that influence a nation's economy. This includes studying aspects such as national income, GDP, unemployment rates, inflation, and overall economic growth. By analyzing these large-scale phenomena, macroeconomics seeks to understand how different sectors interact within the economy and how policies can influence economic stability and growth.

In contrast, individual spending decisions, market competition, and consumer preferences are more aligned with microeconomics, which looks at the specific behaviors of individuals and firms. Microeconomics delves into how these smaller units make choices and how they interact in markets, which is essential for understanding economic dynamics but does not encompass the broader economic conditions that macroeconomics captures. Thus, the distinction lies in the scale and scope of analysis, with macroeconomics addressing the collective outcomes and trends affecting the entire economy.