Macroeconomics is one of the major subdivisions in the study of economics. In this lesson, you'll learn what it is, why it's important and its major principles. You'll also have a chance to take a short quiz after the lesson.

What is Macroeconomics?

Macroeconomics is the study of economics involving phenomena that affects an entire economy, including inflation, unemployment, price levels, economic growth, economic decline and the relationship between all of these. While microeconomics looks at how households and businesses make decisions and behave in the marketplace, macroeconomics looks at the big picture - it analyzes the entire economy.