Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Introduction

Question:

Which of the following options fit best to the given sentence?
Macroeconomics and microeconomics are ___________ .

Options:

Complementary to each other

Substitutes of each other

In conflict with each other

Unrelated to each other

Correct Answer:

Complementary to each other

Explanation:

The correct answer is option 1: Complementary to each other

Macroeconomics and microeconomics are complementary to each other. They are two distinct branches of economics that study different aspects of the economy. Microeconomics focuses on individual economic units such as households, firms, and markets, while macroeconomics examines the economy as a whole, including aggregate variables like GDP, inflation, and unemployment. Understanding both microeconomic and macroeconomic principles is essential for gaining a comprehensive understanding of how the economy functions at both the individual and aggregate levels. Therefore, they complement each other in providing a complete picture of economic phenomena.