The subject of the Study of Macro Economics is based on which principle?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e.The principle of Investment.
- The five principles are: economic output, economic growth, unemployment, inflation and deflation, and investment.
- Macroeconomics focuses on the performance of economies – changes in economic output, inflation, interest and foreign exchange rates, and the balance of payments.
- Poverty reduction, social equity, and sustainable growth are only possible with sound monetary and fiscal policies.