What is Macroeconomics in Economic Theory

Macroeconomics is a branch of economic science that studies the economy as a whole, analyzing large-scale phenomena such as economic growth,
inflation, unemployment, government spending, and international trade. Unlike microeconomics, which focuses on the behavior of individual consumers and
firms, macroeconomics examines the functioning of the entire economic system and the interaction of its various components.

Main Objectives of Macroeconomics

Macroeconomics aims to understand and manage the key economic processes that affect societal well-being. The main objectives are:

• Ensuring sustainable economic growth – studying the factors that influence the growth of the Gross Domestic Product (GDP), developing strategies
  to stimulate long-term economic development, increasing labor productivity and investments.

• Controlling inflation levels – analyzing the causes of inflation, developing measures to contain it, and the influence of central bank monetary policy
  on the overall price level in the economy.

• Reducing unemployment levels – studying the factors that affect employment, analyzing different types of unemployment (frictional, structural, cyclical)
  and developing methods to reduce it, such as professional training programs and encouraging small business development.

• Regulating the state budget and debt policy – analyzing state revenues and expenditures, controlling budget deficits and public debt, developing fiscal
   policies aimed at ensuring economic stability.

• Managing external economic relations – studying trade balances, exchange rates, international competitiveness of the country, and the impact
  of external trade on the national economy.

Main Tools of Macroeconomics

To achieve its goals, macroeconomics uses various tools:

• Fiscal policy – managing government spending and taxes to regulate economic activity. Increasing government spending can stimulate economic growth,
  while raising taxes can slow inflation.

• Monetary policy – regulating the money supply, controlling interest rates and the amount of money in the economy. Central banks can increase or decrease
  the money supply depending on macroeconomic conditions.

• Labor market regulation – measures to improve the skills of the workforce, stimulate employment, support entrepreneurship, and create new jobs.

• Government regulation – establishing laws and regulations aimed at ensuring the stability of financial markets, combating crises, and regulating the competitive environment.

• International trade tools – regulating import and export operations, introducing tariffs, quotas, and trade agreements aimed at developing economic
  relations between countries.