Macroeconomics
Macroeconomics studies the economy as a whole, including output, employment, inflation and international flows. It examines interactions between households, businesses, government and other economies. It differs from microeconomics, which focuses on individual markets and decision makers, although the two levels are connected.
Worked example
An accountant assesses how a broad increase in interest rates could affect household spending, business investment and demand across sectors, rather than examining only one product’s price.
Common mistake
Assuming a change that benefits one firm must increase total economic welfare, or treating the economy as if it were simply a larger company.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | BT | Direct | September 2026–June 2027 |
| FIA | FBT | Direct | September 2026–June 2027 |