1)Why do we use the letter y to represent the disposable revenue in macroeconomics?

2)How has entrepreneurship thrived as a tool in macroeconomics?

3)How do economists reconcile so many different macroeconomic models?

1)When plotting graph the income is used to show on the Y-axis. Generally, we represent Y(capital) as income in macroeconomics. The disposable revenue is also a part of income which is represented by y(small). It is revenue which is left for the consumption after deducting all the expenses like tax, rent paid.

2)

Entrepreneurship has not prospered as a macroeconomic tool.

Macroeconomics involves the study of how the limited resources are utilized by a whole economy in production of goods and services for consumption. Economies can be those of state or even the world. The overall decisions concerning the economic factors affecting the whole economy are made. The economic factors affecting the state include the total national earning, the rate of employment, inflation and deflation rates and the total worth of the goods and services produced in the state among others.

Most of the popular economists argue that macroeconomics is independent and as a result they pay no attention to the role of entrepreneurship. Therefore, entrepreneurship has not played any role in macroeconomics. However, if given a chance, entrepreneurs can play a great role in macroeconomics. They create jobs by developing several businesses which as a result improves the level of productivity which boosts the economic growth.

3)

All the macroeconomic models existing in economics are interdependent and interlinked. They are based on a different set of assumptions and yet are directed towards the same goal of economic growth.

Solow model shows that economic growth will be fast-paced in developing countries if they increase the usage of capital intensive techniques of production whereas developed countries will grow only if they bring innovation in the production. On the other hand, endogenous growth theory explains that the countries that have more saving and investment in capital stock will be able to do innovation. It can be said that both the theories are different but explain a common factor, that is, economic growth. Solow growth theory explains how countries which are not operating on their full level can increase their productivity while endogenous growth theory emphasizes on the capital spending which is needed to bring innovation in those economies which are already having high productivity. Therefore, in this way all the macroeconomic models in economics are interlinked, and hence, economists reconcile with them even though they are different.