1)What are two examples of macroeconomics?

2)Can you explain the branches of macroeconomics in detail with relevant examples?

3)Why use empirical macroeconomic models when they are not policy invariant (Lucas Critique)?

1)The following are examples of macroeconomics:

• Economic growth. Macroeconomics studies the factors that affect eonomic growth such as investment, infrastructure development, and technological advancement.
• Price stability. One of the macroeconomic goals for any country is to achieve price stability in the economy. Macroeconomic does so through the study of the factors that may cause price instability in the economy.
• Unemployment. Another macroeconomic goal is to maintain low levels of unemployment in the economy.

2)

Macroeconomics emphasizes the structure, behavior, and performance of an economy as a whole. It looks it factors such as gross domestic product, inflation, government expenditures and employment among other factors. Macroeconomics can generally be categorized into two groups which are;

• Macro static economic. Every economic is affected by various factors which include the supply of capital, types of business organization, size of the population, priorities of people among others. Macro static economic illustrates how these factors relate to a stationary state and how they maintain the state of equilibrium. A stationary state is a state where an economy is said to be at equilibrium.
• Macro dynamic economic. This is a branch of macroeconomics which deals with the analysis of the process of change which occurs over time. It emphasizes on changes such as a change in capital supply, change in population and change in production techniques. It illustrates how the factors affecting an economy relate to achieving a state of equilibrium.

3)Lucas argued that the empirical macroeconomic model does not change with the changes in the policies. The emergence of the RBC and DSGE model has solved this argument as these models are based on micro-foundations and it can determine how the behavior of the economy changes with the change in polices. It considers the reaction of individuals on various policies.