Thursday, 27 July 2023

Unit-1 Introduction to macroeconomics (branch of economy which deals economy as a whole )



1.    What is the difference between stock & flow ?

Ans :  The economic aggregates used in macroeconomics are called macroeconomics variables.

a.     Stock variables : The macroeconomic variables which are measured at a point of time are called stock variables. Stock of a capital in a country, the number of employed persons, money supply, total saving etc. are measured at point of time.

b.    Flow variables : The macroeconomic variables which are measurable only in terms of specific period of time is called flow variables. National income, total consumption, total saving, total investment, total import, total export are examples of flow variables.

2.    What are the uses of macroeconomics ?

Ans : Following are the uses of macroeconomics :

a.     Helpful to understand the working of the economy.

b.    Helpful in formulating economic policy

c.     Helpful in international comparisons

d.    Evaluate the performance of the economy.

3.    Macro economics is the study of aggregates. Give reasons.

Ans: Because it focus on the overall economy rather than individual. This is because it aims to understand and analyze the behavior and performance of an entire economy as a whole. such as GDP, inflation rate, and national income.

4.    Point out the scope of macroeconomics.

Ans:  followings are the scopes of macroeconomics :

a.     Theory of national income.

b.    Theory of employment

c.     Theory of money

d.    Theory of economics growth

5.    Define macro dynamics.

Ans: macro dynamics refers to the overall behavior and interplay of aggregate economic, political, social and environmental factors that influence the functioning and development of entire system. 

Solution of BBS Second year

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