Macroeconomics deals with which of the following studies?

I. Reasons behind the unemployment of resources

II. Determination of total output

The correct answer is Both I and II.Key Points

• Macroeconomics is a branch of economics that deals with the structure, performance, and behaviour of the overall economy.
• It focuses on areas like inflation, economic growth rate, price levels of various goods and services, gross domestic product (GDP), national income and the unemployment rate in a particular country.
• The study of macroeconomics is essential to understand the economic performance of a nation and the factors that affect it.

Important Points

• Macroeconomics deals with the following studies:
• Reasons behind the unemployment of resources: 
  • Macroeconomics focuses on understanding and analyzing the factors that contribute to unemployment on a broader scale.
  • It examines the causes and consequences of unemployment, such as changes in aggregate demand, labour market conditions, technological advancements, and government policies that affect employment levels.
• Determination of total output: 
  • Macroeconomics is concerned with studying and explaining the determinants of a country's total output or national income.
  • It analyzes the factors that influence aggregate production and economic growth, including consumption, investment, government spending, and net exports.
  • Macroeconomists investigate the relationship between these variables and their impact on overall economic performance.

Additional Information

• John Maynard Keynes is known as the founding father of Macroeconomics as a separate discipline.
• He was born on June 5, 1883, in Cambridge.
• He completed his degree in Mathematics and also joined Civil Services in Britain.
• He represented the British Treasury at the Conference of Versailles.
• He expressed his concerns about the fine imposed on Germany in his book 'The Economic Consequences of Peace'.