Give reasons or explain the following statements 4) Macro-Economics deals with whole economy.

Give reasons or explain the following statements

4) Macro-Economics deals with whole economy.

ANSWER:


Macroeconomics is a branch of economics that studies aggregates covering the entire economy. It studies total employment, national income, national output, aggregate demand, aggregate supply, aggregate consumption and savings and total investment. It studies the entire economy in the context of equilibrium. It studies the behaviour of a number of economic variables at a time and takes into consideration their functional relationship and interdependence. Thus, it can be concluded that macroeconomics deals with the economy as a whole.

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