ABSTRACT
Macroeconomics is the study of the behavior of the economy as a whole. The idea is to understand the determinants of aggregate economic activity—the total output of goods and services and its main components, unemployment, inflation, and other indicators of aggregate economic activity. The General Theory was written during the depths of the Great Depression of the early 1930s, and can be regarded as the founding document for the field of macroeconomics. The highest accolades in economics often are conferred on those who devise the new theory that turns out to be successful. Start with the supply and demand diagram that depicts the market for an individual consumer good. Gross domestic product is also spending on final goods and services, and spending is broken down into four basic parts: these are consumption, gross investment, government purchases of goods and services, and net exports of goods and services.
