As earlier explained in my blog, Economics is the Study of an Economy. Macro-Economics is the study of the Economy as a whole.
Macro Economics are based on a Small formula based on Aggregate Demand.
AD = C + I + G + (X-M)
AD = for Aggregate Demand
C = Consumption
I= Interest
G= Government Spending
X = Export
M = Import (X-M = Exports minus Imports)
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The economy is based on Supply and Demand, Imagine a little corner store. With out supply they cannot make money or operate as a shop. With out demand they will not make money or sell anything. Which becomes a big problem to a business that wants to grow; when they are barely even surviving.
The Economy is the same way, It lives on Supply and Demand.
If the demand is higher than the Supply it could mean that prices could raise and the economy makes more money than it was when Demand and Supply where the same.
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