Question
Discuss the subject matter of economics.
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Answer
Traditionally, the subject matter of economics has been studied under two branches i. e.,
- Micro Economics: It is that branch of economics, which studies the problems of an individual unit of an economy. Its main tools are demand and supply e.g, Individual income, Individual expenditure.
- Macro Economics: It is that branch of economics, which studies the economic problems at the level of an economy as a whole. It is concerned with determination of aggregate output and general price level in the economy as a whole. Its main tools are aggregate demand and aggregate supply.
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