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What limitations do macroeconomics have?
What limitations do macroeconomics have?
Expert Solution
Limitations of macroeconomics
1) Ignorance of individual: The macroeconomics is concerned with the economy and it does not concern with the individual like individual producers. And, the study of macroeconomics is useless because it ignores individual welfare.
2) Statistical difficulties:- The macroeconomics is the study of economic phenomena with the statistical method and it is more difficult to investigate these economic phenomena because the difficulty relates to the microeconomic variables.
3) Misleading:- The misleading in various economic problems in the macroeconomics theory such that it is not used the same principles in the full employment case.
4) Fallacy:- The macroeconomics is the summation of individual activities but in the case of an individual does not necessarily in the concept of economy as a whole.
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