By Economics Understood on youtube.com
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Macroeconomics is the study of how the decisions of individuals, firms, governments, and foreign countries, as well as banks and financial institutions, affect the economy as a whole. It is the aggregation of microeconomic decision making. Governments seek to control the economy to further their own interests or to please the electorate by focusing on four main policy objectives: controlling inflation, improving economic growth, ensuring low unemployment, and promoting foreign trade. These objectives are often in conflict with each other and governments must make difficult trade-offs when setting macroeconomic policy.