1.

State the features of Macro-Economics.

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Answer:

Features of Macro-ECONOMICS are -

  • A unit of study - Macro-Economics deals with the study of the whole economy. This includes aggregate inputs such as the national income, national performance, national EMPLOYMENT, the GENERAL price levels, the business cycle.
  • Money and interest theory - Changes in demand and money supply have a significant impact on employment levels. Accordingly, macroeconomics studies functions of money and related theories. Interest rates for banks and financial institutions are also studied in macroeconomics.
  • Economy as a bird eye view - Macro Economics provides an overall picture of the economy. It brings together and connects different aggregates to SHOW the INTERRELATIONSHIP between them.



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