State whether the following statement is True or False with reason:
Macro economics studies whole economy.
True, macro economics studies whole economy.
In Macroeconomics, we study how an economy as a whole operates. It focuses on the aggregate measures such as, Aggregate Demand, Aggregate Supply, Aggregate Price Level, etc. It studies how these variables are determined and how they change over time. It helps us in understanding various economic relationships and economic problems at the economy or aggregate level. In Macroeconomics, we confront major problems such as poverty, unemployment, inflation, BOP disequilibrium, etc.
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- Meaning and Features of Macro Economic