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Keynesian economics Macroeconomics is the study of the factors applying to an economy as a whole, such as the overall price level, the interest rate, and the level of employment (or equivalently, of income/output measured in real terms).
Macroeconomics Macroeconomics, at least in its modern form,[26] began with the publication of John Maynard Keynes's General Theory of Employment, Interest and Money.[25][27] When the Great Depression struck, classical economists had difficulty explaining how goods could go unsold and workers could be left unemployed. In classical theory, prices and wages would drop until the market cleared, and all goods and labor were sold. Keynes offered a new theory of economics that explained why markets might not clear, which would evolve (later in the 20th century) into a group of macroeconomic schools of thought known as Keynesian economics â€“ also called Keynesianism or Keynesian theory.