Answer the following (any three): Explain any four features of macro economics.

Answer: Macro economics studies the economy as a whole and its large aggregates. Its features are:

1. Study of aggregates: It studies aggregate variables such as national income, total employment, general price level, aggregate demand and aggregate supply.
2. Income theory: Its main concern is the determination of national income and employment, so it is called income theory.
3. Lumping method: It uses the lumping (aggregative) method, treating the economy as a whole.
4. General equilibrium analysis: It studies the interdependence of aggregates and the equilibrium of the whole economy.
5. Policy-oriented: It helps the government frame policies on inflation, unemployment, growth and the balance of payments.
6. Growth models: It studies the factors of economic growth and development.