Question

Macro-economic theory is also called

• A. Income theory
• B. Price theory
• C. National theory
• D. Consumption theory

Hint:

Microeconomics = Price Theory; Macroeconomics = Income and Employment Theory.

Answer 1

The Correct Option is A

Step 1: Understanding the Concept:
Economic theory is divided into microeconomics and macroeconomics based on the level of economic aggregation.

Step 2: Detailed Explanation:
Microeconomic theory studies individual economic units, prices, and resource allocation, and is termed 'Price Theory'.
Macroeconomic theory analyzes aggregate national output, general price levels, employment, and aggregate demand/supply, and is universally termed 'Income and Employment Theory' (or simply 'Income Theory').

Step 3: Final Answer:
Therefore, macro-economic theory is also called Income theory.