Final answer:
Macroeconomists study business cycles, inflation, and unemployment, which is a true statement. They focus on aspects like economic growth, controlling inflation, and maintaining a sustainable balance of trade, observing how supply and demand coordination can impact macroeconomic goals.
Step-by-step explanation:
Macroeconomists indeed study business cycles, inflation, and unemployment as well as productivity. The statement in the question is true.
These are key aspects of the macroeconomic performance of an economy. The neoclassical perspective, specifically, focuses on long-term economic growth and suggests that the government should prioritize controlling inflation and fostering long-term growth, rather than being overly concerned with short-term fluctuations such as recessions or cyclical unemployment.
According to this view, potential GDP and the natural rate of unemployment are two building blocks of neoclassical economics.
Potential GDP dictates the size of the economy, and it is posited that wages and prices will adjust flexibly to return the economy to this potential GDP output level over time. In macroeconomic policy, apart from economic growth, the other main goals include achieving low unemployment, low inflation, and a sustainable balance of trade.
Failures in coordinating supply and demand can lead to issues like cyclical unemployment, inflation, and trade imbalances, all of which present policy challenges.