Why does the law of demand not operate in macroeconomics?

Expert Solution

If we talk in simple terms then law of demand simply says that if other things are held constant then price and quantity demanded are inversely related which means if the price increases then quantity demand will decrease and vice versa

it comes under the microeconomics because it deals with a small firm or individual level but when we talk about macroeconomics then it gives a overall bigger picture of the economy which is like calculation of unemployment rate , Inflation level

If we take macro factors thenthe factors does not become constant and they become variable

Rahul Sunny answered 2 years ago

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