Any concept or saying, that describes the functioning of an imaginary economy is called _____.

Macroeconomic Model

The correct answer is Option (1) → Macroeconomic Model

A macroeconomic model is a theoretical framework or simplified representation that describes the functioning of an economy as a whole—showing relationships between key variables like national income, output, employment, inflation, and investment. It helps economists analyze and predict the behavior of an imaginary or real economy under different conditions.