Research on Macroeconomics

Name
Instructor
Course
Date
Research on Macroeconomics
As the field of economics expands, all eyes and interests shift to macroeconomics as the research area. Macroeconomics is one of the branches of economics which deals with the structure, behavior, performance and the decision making within the economy as a whole. Relatively, macroeconomics is a new branch thus there are many issues still need to be fixed and many new things to discover. Macroeconomics as well seems to be changing faster welcoming any form of contribution towards any problem discovered (Prescott, 3). Thus, macroeconomics goes beyond regional and national economies and look at the global economies as the whole. In macroeconomics, all the aggregated economic indicators such as price indices, national income, and GDP among other indicators. The study also involves examining the interrelations among different economic sectors to better understand the economic functions as the whole.
In most cases, the economy of any country is measured by the level of the national income which sometimes fluctuates what we call business cycle. At the same time, the economy may face the increase in national income which leads to long-term economic growth. Thus, macroeconomics tries to understand the two factors, fluctuation in national income and the factors which determine long-term economic growth. Therefore, in a nutshell, the study of macroeconomics gives priority to domestic growth, property sector, taxation policy and the interrelations between the financial sector and the macroeconomy.

On the other hand, macroeconomics differs from microeconomics which deals with minor factors that affect the decisions of companies and individuals in the economy. Although, the economic factors that are studied both in microeconomics and macroeconomics are interconnected such that they influence each other. For example, looking at the topic of inflation which occurs in the economy affecting the prices of the goods in the whole economy has an impact on the pricing level of the goods produced in the company (Kukk, Merike and Karsten Staehr 2588). Taxation topic is important in determining how the interest rates affect the profit of a firm (Auerbach, Alan and Itai Grinberg, 821).

Works cited
Auerbach, Alan J. and Itai Grinberg. “Macroeconomic Modeling of Tax Policy: A Comparison of Current Methodologies.” National Tax Journal, vol. 70, no. 4, Dec. 2017, pp. 819-836. EBSCOhost, doi:10.17310/ntj.2017.4.06.Kukk, Merike and Karsten Staehr. “Macroeconomic Factors in the Dynamics of Corporate and Household Saving: Evidence from Central and Eastern Europe.” Emerging Markets Finance & Trade, vol. 53, no. 11, Nov. 2017, pp. 2585-2608. EBSCOhost, doi:10.1080/1540496X.2016.1262759.Prescott, Edward C. “The transformation of macroeconomic policy and research.” The American Economist 50.1 (2006): 3-20.