#macroeconomics #economics

Macroeconomics is concerned with decision making for the economy as a whole.

Examples include:

• government decisions regarding which products to tax, such as tobacco, alcohol and petrol — this has a macroeconomic impact not only on these industries but also on the wider economy

• government policies to achieve economic growth, stable inflation, employment,

  balance of payments stability and redistribution of income.

• government decisions to improve market efficiencies and the productive

  capacity of the economy, such as through education and training, labour

  market reforms, deregulation, improving incentives to work and invest, and

  privatisation.

• the government setting different rates of progressive taxation

  to ensure those who earn more pay a greater proportion of income tax, without

  creating disincentives to work.

• government decisions and policies regarding the eradication of poverty.

• government decisions about immigration and emigration.

• government decisions about protectionism, such as the use of tariffs and

  import quotas to limit competition from international rivals.

• the decision of the population in how they allocate their income between

  savings and expenditure.

• decision making of consumers, workers, savers, lenders and firms due to the

  consequences of inflation.

• the economy’s decision about the degree of international specialisation.

• the role of speculators and multinational companies in the determination of

  exchange rates