Question

Give reasons or explain the following statement:
Macroeconomics is the study of aggregates.

Answer 1

Macroeconomics is concerned with the behaviour of the economy as a whole. It is the study of aggregates and averages of the entire economy.

The subject matter of macroeconomics is income and employment, inflation, balance of payment problems, investment, etc.

Hence Macroeconomics is called the study of aggregates.