Select the correct statements from the following in the context of macroeconomics.
(A) It deals with the aggregate economic variables.
(B) It has emerged as a separate subject in the 1930s.
(C) It takes into account various interlinkages between the different sectors of an economy.
(D) It mostly examines the functioning of the particular sector of the economy.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A), (B) and (C) only
Microeconomics studies a single consumer, firm or market. Macroeconomics steps back and looks at the economy as a whole, through aggregate variables such as total output, employment and the price level, and through the links between its sectors. It became a separate subject after Keynes’s General Theory of 1936; looking at a particular sector is the work of microeconomics.
(A) It deals with the aggregate economic variables. Correct. Macroeconomics simplifies the analysis of the whole economy by looking at a few aggregate variables, such as national income, total employment and the price level, and at how they are determined.
(B) It has emerged as a separate subject in the 1930s. Correct. Keynes’s General Theory appeared in 1936, during the Great Depression, and macroeconomics took shape as a separate branch after it.
(C) It takes into account various interlinkages between the different sectors of an economy. Correct. The aggregate variables are not studied one by one: households, firms, the government and the external sector are linked, and macroeconomics studies how a change in one sector works through the others.
(D) It mostly examines the functioning of the particular sector of the economy. Incorrect. Studying a particular market or sector is the work of microeconomics, which looks at individual economic agents and the markets for different goods and services.
Note: A same/similar question was asked in CUET (UG) in the papers below.
| 2026 | 2025 | 2024 | 2023 | 2022 |
| 13-05 S2 | 22-05 S2* | – | – | – |
* A similar question.
NCERT (2025-26): “Summary … Macroeconomics deals with the aggregate economic variables of an economy. It also takes into account various interlinkages which may exist between the different sectors of an economy. This is what distinguishes it from microeconomics; which mostly examines the functioning of the particular sectors of the economy, assuming that the rest of the economy remains the same.… …Macroeconomics emerged as a separate subject in the 1930s due to Keynes. The Great Depression, which dealt a blow to the economies of developed countries, had provided Keynes with the inspiration for his writings.…” |