Macro economics suffers from certain limitations. They are:
There is a danger of excessive generalisation of the economy as a whole.
It assumes homogeneity among the individual units.
There is a fallacy of composition. What is good of an individual need not be good for nation and viceversa. And, what is good for a country is not good for another country and at another time.
Many non - economic factors determine economic activities; but they do not find place in the usual macroeconomic books.
Copyright © 2018-2021 BrainKart.com; All Rights Reserved. (BS) Developed by Therithal info, Chennai.