"During the period of boom when aggregate demand, national income and prices are high, entrepreneurs tend to make high profits."
This statement implies _______.

effect of micro economic variables on macro variables

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effect of macro economic variables on micro variables

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interdependence of micro and macroeconomics

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both (b) and (c).

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Solution

The correct option is D both (b) and (c).
When boom period is going on in the economy, the macro level economic growth is reflected positively in the micro variables of the economy, due to which all the inter-related sectors enjoy the benefits. Therefore, it showcases the relation between micro and macro economics.

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Similar questions

State the following statements are true or false.
1) Macro-Economics is known as income analysis.
2) Increase in national income is a Micro- Economic goal.
3) Macro-Economic adopts lumping method.
4) Study of price determination is a subject matter of Macro-Economics.
5) Micro-Economics deals with the study of aggregates.
6) National output is an example of macro variable.

Q. Fill in the blanks with appropriate alternatives given in the brackets.

1) The terms Micro and Macro Economics were first used by _______________. (Adam Smith/ Robbins/ Ragner Frisch/ Marshall).

2) Micro Economics is a study of _________. (Whole economy/ general price level/ National output/ Individual economic unit).

3) Micro Economics is also called as ________________. (Income theory/ Price theory/ Growth theory/ Employment theory)

4) Micro Economic analysis adopts __________________ method. (lumping/ aggregative/ Slicing/ inclusive)

5) Micro Economics is a __________________________ equilibrium approach. (partial/ general/ total/ multi-variable).

Q. Give reasons or explain the following statements

1) Macro-Economics is the study of aggregates.
2) Macro-Economics is also known as income and employment theory.
3) The scope of Macro-Economics is wide.
4) Macro-Economics deals with whole economy.
5) Macro-Economics is different from Micro-Economics.

Q. Distinguish between Micro Economics and Macro Economics.

Q. Distinguish between :
Micro Variables and Macro Variables

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"During the period of boom when aggregate demand, national income and prices are high, entrepreneurs tend to make high profits."This statement implies _______.

"During the period of boom when aggregate demand, national income and prices are high, entrepreneurs tend to make high profits."
This statement implies _______.