WBCS.LIVE practice question

Macroeconomics deals with which of the following studies? i. Reasons behind the unemployment of resources. ii. Determination of total output.

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Only i
  2. Only ii
  3. Neither i nor ii
  4. Both i and ii

Correct answer and explanation

Correct answer: Both i and ii

Explanation: Macroeconomics focuses on the study of the economy as a whole. It analyses aggregate variables such as national income, total output, employment, and inflation. One of its key concerns is to understand the causes of unemployment of resources and suggest policies to achieve full employment. It also studies the determination of total output and income of a country, along with growth trends. Hence, both statements correctly describe the scope of macroeconomics.