Macroeconomics

The analysis of how the overall economy works; how the decisions of consumers, business, investors and governments affect key measures such as inflation, unemployment and gross domestic product. Economists try to use macroeconomic analysis to forecast economic indicators but human behaviour is hard to predict, especially as forecasts can affect individual decisions. But macroeconomic policy tools include fiscal policy, monetary policy and changes in laws and regulations designed to change behaviour. See also microeconomics.