Macroeconomic Models

Macroeconomic models describe the operation of the economy of a country or a region through a model who's modelling constructs and outcomes are made at the macro-level  (Yurdusev, 1993). "Macro" refers to the level of analysis. Often a distinction between the micro and macro level is made. The micro-level refers to the analysis on the level of individuals, whereas the macro-level looks over a large populations, which can be a country level. Whereas in the past these models remained at the macro level and aggregates were used to model the economy, nowadays macro-economic models are also be constructed by modelling the relationships and decisions of individual agents, which interactions results in macro-economic effects (Gilbert & Terna, 2000).

References

Yurdusev, A.N. (1993). Level of Analysis and Unit of Analysis: A Case for Distinction. Millennium: Journal of International Studies, 22(1): 77—88.

Gilbert, N. & Terna, P. (2000). How to build and use agent-based models in social science. Mind & Society, Vol 1, No. 1, pp 57-72.