Question

Give reason or explain the following statement

Macro-Economics is also known as income and employment theory.

Answer 1

Macroeconomics is also known as the ‘Theory of Income and Employment’, or income analysis, as it focuses on how income and employment levels are determined in an economy and what causes fluctuations in them. In addition macroeconomics also explains the factors that lead to increase in the output, income and employment in the long run.