Explain with reasons whether you agree or disagree with following statements. After the world depression, importance of Macro Economics study increased.
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Yes I agree with the statement.
Before Great depression, majority of the economists (especially classical economists) focused on theories on individual units like price mechanism, theory of the firm,etc.
During the Depression, the English economist J.M.Keynes came up with his general theory on income and employment which focused on the importance of Macroeconomic study and the government that paved a way to solve the problem of depression.