Question

Which part of economic theory studies the determination of income and employment in the economy?

Options

• Microeconomics

• Macroeconomics

• Both (a) and (b)

• None of these

Answer 1

Macroeconomics

Explanation:

Macroeconomics is the branch of economic theory that studies the economy as a whole. It focuses on aggregate variables, specifically dealing with the Theory of Income and Employment, which explains how national output, total employment, and general price levels are determined.