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What is macroeconomics?

Macroeconomics is the study of an economy’s behavior, performance, and trends. It focuses on the effects of large-scale shifts in the economy and the causes behind them, such as interest rates, unemployment, and inflation.

Macroeconomic trends can be used to shape investment strategies and forecast how investments perform in the future. For example, if a country is expected to undergo a high level of inflation, shifting investments toward Treasury inflation-protected securities is an effective hedge against inflation.