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Introduction to Micro and Macro Economics — Economics STD 12 Commerce / Arts — Question

Maharashtra BoardEnglish MediumSTD 12 Commerce / ArtsEconomicsIntroduction to Micro and Macro Economics4 Marks
Question
Macro economics is a partial equilibrium analysis.
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Answer

No, I do not agree with this statement.
OR
Macro Economics deals with the whole s economy.
Yes, I agree with this statement.
  • Macro economics deals with entire economy.
  • Macro economics follow general equilibrium analysis. On the other hand, micro economics follow partial equilibrium analysis.
  • Macro economics studies the behaviour of number of aggregate economic variables.
  • Macro economics follows general equilibrium. It assumes “everything depends on every thing else.”
  • General equilibrium deals with the behaviour of demand, supply and prices in the whole economy.
  • Therefore, macro economics is not a partial equilibrium analysis but it is a general equilibrium analysis.

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