Macroeconomics looks at the aggregate economy. Aggregate means added up, total or whole. Macroeconomics looks at all the economy’s markets added together, the whole economy, and studies aggregate level variables such as aggregate demand (AD), inflation, unemployment, Gross Domestic Product (GDP), economic growth and international trade. Macroeconomics is concerned with the performance of the entire economy over time and in comparison to other countries for example the UK vs. the US.
Macroeconomics seeks to address questions such as “What are the benefits of the UK economy growing”?, “What are the effects of a rise in the average price level”?, “How does a strong dollar affect the UK”? and “Should the government spend more money to boost the economy”?