GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Determining the GNP of India.
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Finding the causes of failure of ABC Ltd.
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Identifying the causes of inflation in India.
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Analyse the causes of failure of industry in providing large scale employment.
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Detailed explanation-1: -Macro economics deals in the study of a nation’s aggregate demand, aggregate supply, national income, employment, inflation etc. Therefore, it does not deal in individual variables like X and Co, it is micro approach because micro deals with individual part of the society.
Detailed explanation-2: -The correct answer is option 2, i.e. the determination of prices in the agricultural sector. Agricultural prices do affect macroeconomics, but it is not a direct issue studied, unlike the other three.
Detailed explanation-3: -General price level is related to the prices of most of the commodity in a nation at a certain period of time. Therefore, it is not a micro variable. It is a macro variable since it includes the study of economics as a whole.
Detailed explanation-4: -Macroeconomics focuses on the performance of economies – changes in economic output, inflation, interest and foreign exchange rates, and the balance of payments. Poverty reduction, social equity, and sustainable growth are only possible with sound monetary and fiscal policies.