Macroeconomics activity and demand/Macroeconomic model

In studying macroeconomics, the focal point is the whole economy versus markets for goods and services. This approach entails looking at the forces affecting growth, inflation, and unemployment at the aggregate level whether it is output, income, or the set of components within GDP.

In essence, macroeconomics involves studying demand and supply for all goods and services in a nation's economy.

Aggregate demand is the total amount of goods and services people want to buy; in other words, it measures what people wish to purchase rather than what is actually produced.