Macroeconomics is basically concerned with the study of groups or aggregates. It is of three kinds, as defined below: (1} Micro static analysis: It concerns an equilibrium point for a specific group of macroeconomic variables at any given point of time. (2) Aggregate Dynamic Analysis: This type of analysis involves forecasting the equilibrium points for several groups of macroeconomic variables over several time intervals. This type of analysis has been used extensively in the past to forecast economic and political conditions.
Micro-Macro economics is essentially concerned with the analysis of individual consumption. This type of analysis deals with the economic behavior of individuals and households. It considers how consumption patterns vary in relation to the changing trends in demand and income of the overall economy. In this type of analysis, the effects of external shocks are accounted for by analyzing how changes in income and expenditure affect consumption patterns of individuals and households.
The third type of macroeconomics, Aggregate Dynamic, is concerned with the analysis of aggregates such as the gross domestic product (GDP), the stock of money, and the output of the country's productive resources. This kind of macroeconomics examines how changes in a certain aggregate can be related to changes in income and expenditure in various sectors of the economy. A key element of this type of analysis is the idea of substitution.
Micro dynamic analysis also involves the analysis of micro-aggregates. The aim of this type of macroeconomics is to provide a macroeconomic approach to the study of individual and household consumption. In this type of analysis, individuals and households are considered as a unit of analysis and are compared to one another.
Some of the features of macroeconomics include the following. This type of analysis seeks to provide general rules and principles that can be applied to an unlimited number of cases. These principles are based on the idea that the level of inflation is a function of the level of money and credit. In the case of economic fluctuations, it is generally assumed that money and credit are equal in value.
Many macro economists regard macroeconomics as an advanced science. As a result, there have been developments in the field of macroeconomics over the years, and a lot of methods have been developed to better the way in which the field of macroeconomics is conducted. Some of these methods include empirical methods and formal methods.