What is Macroeconomics? Why have some countries experienced rapid growth in incomes over the past centuries while others stay mired in poverty? Why do some countries have high rates of inflation while others maintain stable prices? Why do all countries experiences recessions and depressions — recurrent periods of falling incomes and rising unemployment — and how can government policy reduce the frequency and severity of these episodes ? Macroeconomics, the study of the economy as a whole, attempts to answer these and many related questions.