Q.Identify and explain the following concept:
Rani collected the data of India's National Income for the purpose of study.

The missing term is Income theory. Macroeconomics is popularly called 'Income theory' because its central task is to explain how the level of national income, output and employment is determined.

The correlation contrasts the two branches of economics by their popular nicknames. Microeconomics studies individual units — a single consumer, firm or market — and its main job is to explain how the price of a particular good or factor is fixed by demand and supply; hence it is called Price theory.

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The correct option is Macro Economics, because it studies the economy as a whole through aggregates.

Macroeconomics (from Greek 'macros' = large) studies the whole economy — total output, national income, aggregate employment, the general price level and economic growth. Microeconomics studies individual units such as a single consumer or firm. Econometrics applies statistics and mathematics to test economic th …