Q.2 (A) (i) Identify and explain the concept : Raju collected the information about total consumption, total savings and total investment of Indian economy.
Best answer
Answer: Macro economics (aggregates)
Explanation: Macro economics is the study of the economy as a whole. It deals with aggregates such as total consumption, total saving, total investment, national income, total employment and the general price level. Raju is studying such aggregates for the entire Indian economy, so this is macro economic analysis. It uses the lumping (aggregative) method and is also called income and employment theory.
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