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Question

The study of impact of increase in money supply on general price level of employment is the subject matter of ____________.

A
normative economics
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B
positive economics
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C
macroeconomics
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D
microeconomics
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Solution

The correct option is C macroeconomics

The study of increase in money supply or general price or level of employment is the subject matter of macro economics.

The term ‘Macro’ is derived from the Greek word 'Makro' meaning large. So Macroeconomics is that part of economics which studies the economic problems and issue that are on a large scale. It studies about the performance of the economy as a whole and not of any individual firm or business. It focuses on the study of problems like inflation, unemployment, poverty, etc.


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