Give reasons or explain the following statements 3) The scope of Macro-Economics is wide.

Give reasons or explain the following statements

3) The scope of Macro-Economics is wide.

ANSWER:

Macroeconomics is said to have a wide scope as it deals with aggregates for the economy as a whole. Some of the aggregates that are studied in macroeconomics are national income, general price level, employment, investment, etc. Macroeconomics aims at studying the interrelationship between such aggregates and accordingly determine the cause and effect of variations in them. Thus, it can be said that it studies the various economic units in aggregate terms.

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