Consumption-based Macroeconomic Forecasting
Macroeconomics explains the behavior of broad measures
of economic activity, such as the total amount of
income produced in the economy or the overall average
of the prices households pay for the goods and services
that they consume. Such aggregates reflect the confluence
of many different decisions in product and financial
markets: Households decide how much to work and
what to spend; businesses commit to capital investment
projects; foreigners decide on their demand for U.S.
products; and governments determine taxes and spending.
