Question

Give reason or explain the following statement

Macro-Economics is the study of aggregates.

Answer 1

Macroeconomics is the study of aggregates; as it studies the economy as a whole, rather than the individual economic units as  a consumer or a producer. It studies the aggregates such that they cover the entire economy. For instance, it studies national income rather than individual income. Similarly, it studies aggregate price levels rather than price level of a particular commodity.