Editing Macroeconomic model (section)

{{Short description|Model used in Macroeconomics}}
{{Macroeconomics sidebar}}
A '''macroeconomic model''' is an analytical tool designed to describe the operation of the problems of economy of a country or a region. These models are usually designed to examine the [[comparative statics]] and [[dynamical system|dynamics]] of [[aggregate data|aggregate quantities]] such as the total amount of [[good (economics)|good]]s and services produced, total income earned, the level of employment of productive resources, and the [[price level|level of prices]].

Macroeconomic models may be logical, mathematical, and/or computational; the different types of macroeconomic models serve different purposes and have different advantages and disadvantages.<ref>{{cite web |url= https://www.piie.com/blogs/realtime-economic-issues-watch/need-different-classes-macroeconomic-models |title= The need for different classes of macroeconomic models |last= Blanchard |first= Olivier |date= January 12, 2017 |website= Peterson Institute for International Economics |publisher= |access-date= February 22, 2022}}</ref>  Macroeconomic models may be used to clarify and illustrate basic theoretical principles; they may be used to test, compare, and quantify different macroeconomic theories; they may be used to produce "what if" scenarios (usually to predict the effects of changes in [[Monetary policy|monetary]], [[fiscal policy|fiscal]], or other macroeconomic policies); and they may be used to generate economic [[forecasting|forecasts]]. Thus, macroeconomic models are widely used in [[academia]] in teaching and research, and are also widely used by international organizations, national governments and larger corporations, as well as by economic consultants and [[think tank]]s.