Do you agree with the following statements? Give reasons.
1) The scope of Macro-Economics is wide.
ANSWER:
The above statement is correct. Macroeconomics is all about the complete utilisation of resources, full employment level, price stability, and growth of the economy. No economy is capable enough in utilising all of its resources effectively and efficiently. In some economies, resources are under-utilised, while in some economies resources are over utilised. To achieve an ever increasing growth rate and efficient utilisation of resources, it is necessary to use macroeconomic models and policies. Since all the economies follow and frame macroeconomic policies for their economic growth, it can be said that it has a wide scope.
