Question

Identify & explain the concept from the given illustration.

Ramesh analysed the total investments, total employment, total consumption and total savings of the economy for the financial year 2019-20.

Answer 1

Concept: Macroeconomics

Explanation:

1. Macroeconomics is the branch of economics which analyses the entire economy. It deals with total employment, national income, national output, total investment, total consumption, total savings, general price level, interest rates, inflation, trade cycles, business fluctuations etc.
2. Since Ramesh analysed some of these macro variables for the financial year 2019-20, this illustration is related to the concept of ‘Macroeconomics’.