Phase IFoundation
Background
Overview
UPSC frequently tests candidates on their understanding of key macroeconomic indicators, their interrelationships, and the policy responses to economic challenges like inflation, recession, and growth slowdowns, which are crucial for economic governance and policy formulation.
Macroeconomics is the branch of economics that studies the behavior and performance of an economy as a whole, focusing on aggregate changes in the economy such as unemployment, growth rate, gross domestic product, and inflation. Inflation refers to the rate at which the general level of prices for goods and services is rising, and consequently, the purchasing power of currency is falling.