Macros are the heart, soul, and meat of Keyboard Maestro.
See the Keyboard Maestro Documentation for a complete description.
Macros, also known as Shortcuts, are a way of improving your productivity by allowing you to perform repetitive or frequently required actions more quickly and accurately, tailoring your Mac to your usage patterns.
A macro is a process consisting of a series of steps, known as Macro Actions, that will be run (executed) when any of its Triggers are invoked (like pressing a Hotkey/shortcut) and the proper environment is present (like a certain app is running). Sets of Macros are collected together into a Macro Group, where you can define the required environment for the macros to be active (available) to run.
Macros can do almost anything you can do manually on your Mac, and much that you can't, like running scripts.
For a more detailed list of actions a Macro can do, see:
A typical simple Macro consists of a single Hot Key trigger, such as Control-A, together with a single action, such as the Insert Text by Typing Action that will “type my address” .
To create a Macro, first launch Keyboard Maestro, select the desired Macro Group to contain it, and then click the + button below the Macros list. To edit a Macro, double click it, or select it and press the Edit button. The Macro Editor window will be displayed. For complete, how-to details, see the Macros Section in the Keyboard Maestro Documentation
See also the Macro Groups, Macro Actions, Macro Triggers and Recording sections.