State the following statements are true or false. 3) Macro-Economic adopts lumping method.

State the following statements are true or false.

3) Macro-Economic adopts lumping method.

ANSWER:

True

Explanation:

Yes. Macroeconomics adopts the lumping method. It splits the entire economy into big lumps; that is, it divides the economy into aggregates for study. It studies how an economy operates as a whole. It focuses on aggregate measures such as aggregate demand, aggregate supply and aggregate price level and studies how these variables are determined and how they change over time.

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