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Macroeconomics, being the knowledge of the behaviors and performances of the economy all together, looks at such regions as the Federal Reserve System, gross domestic product, unemployment, and business cycles.

The Federal Reserve System's vital function is to organize the supply of money in circulation. Monetary policies prepared by theFederal Reserve System's Board of Governors contain a tremendous impact on the whole economy. These policies influence such factorsas the quantity of money member banks have obtainable to loan, interest rates and on the whole price level of the economy. 

Macroeconomists also learn unemployment, which simply defined is an extremely large work force and a small job market, to conclude methods to control this serious economic difficulty. Unemployment means mislaid production for the economy and loss of income for the person. One kind of unemployment is frictional unemployment, which comprises those people who are not employed as they have been fired or have given up their job. Cyclical unemployment follows the cycles of the economy. A number of unemployment is because of seasonal factors; that is, employees are hired only throughout certain times of the year. 

To help diminish the problem of unemployment, the government can make use of its powers to increase levels of spending by businesses, consumers, and the government itself and by lowering taxes or giving tax incentives, which creates available more money with which to buy goods and services. This in order puts more laid-off workers rear to work. The Federal Reserve System can also add to spending by lowering interest rates.

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Variations in total economic movement are well-known as business cycles, and macroeconomists are concerned with sympathetic why these cycles occur. The majority unemployment and inflation are caused by these variations. There are four stages of the business cycle: prosperity (peak), recession, trough and recovery. The length and period of each cycle varies. From its highest point, prosperity, to its lowest point, through, these stages are marked by adds to and decreases in GDP, demand for goods and services, unemployment, and spending.

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