The subject of the Study of Macro Economics is based on which principle?

The correct answer is The principle of National Income.

Key Points

• Principle of National Income:
  • The value of the commodities and services a nation produces in a fiscal year is referred to as national income.
  • As a result, it represents the sum of all economic activity carried out in a nation over the course of a year.
  • It is valued in monetary terms.
  • The terms "national income" and "national dividend," as well as "national output" and "national spending," are ambiguous.
• Macro Economics:
  • It is the study of how economies function, including changes in the balance of payments, inflation, interest and foreign exchange rates, and economic production.
  • Only with solid monetary and fiscal policy are poverty alleviation, social equality, and sustainable growth conceivable.

Additional Information

• Consumer theory:
  • Microeconomics includes the field of consumer theory.
  • It investigates how people choose what to buy with their money based on their tastes and financial restrictions.
• Producer theory:
  • The producers theory looks at how businesses recruit and combine productive inputs to produce goods at reasonable rates.