Question

Do you agree with following statements? Give reasons.
Micro economics is known as Income Theory.

Answer 1

No, it is macro economics which is known as the income theory.

Macro-economics is also called the income and employment theory because it deals with determination of equilibrium level of income and the corresponding level of employment in the country. Macroeconomics aims to study broader concepts like the determination the national income and the full employment level which helps the government to make policies.