Introduction (Definition) Macroeconomics is a major branch of economics that deals with the performance, structure, and behavior of the economy as a whole (Snowden and Vane 2002). Macroeconomists study and seek to understand the determinants of aggregate trends in the economy with particular focus on national income, unemployment, inflation, investment, and international trade. In contrast microeconomics is primarily focused on the determination of prices and the role of prices in allocating scarce resources (Blaug 1985). While macroeconomics is a broad field of study, there are two areas of research that are emblematic of the discipline: The attempt to understand the causes and consequences of short-run fluctuations in national income (the business cycle), and the attempt to understand the determinants of long-run economic growth (increases in national income). Macroeconomic models and their forecasts are used by both governments and large corporations to assist in the development and evaluation of economic policy and business strategy. Objectives of Macroeconomics Broad......

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