Macroeconomics can be defined as:

Correct option is D

The correct answer is (D) A branch of economics that studies the behaviour and performance of an economy as a whole

• Macroeconomics focuses on the overall functioning and structure of the economy, rather than individual markets.

• It studies aggregate indicators such as GDP, unemployment rates, inflation, national income, and overall economic growth.

• This branch helps in understanding economic policies, including monetary and fiscal policy, and how they influence the economy at large.

Information Booster:

• Key areas in macroeconomics include:

  • National income accounting

  • Aggregate demand and supply

  • Inflation and deflation

  • Business cycles

  • Unemployment trends

• It contrasts with microeconomics, which examines the behavior of individuals and firms.

• Macroeconomic theories are used by governments and central banks to frame policies (e.g., RBI’s interest rate decisions).

• Influential macroeconomists include John Maynard Keynes, who developed theories to combat the Great Depression.