Consider the following statements relating to classical theory of employment:1. Classical theory is based on the assumption of full employment2. Classical version of full employment is a situation where involuntary unem-ployment is present3. Classical version of full employment is consistent with seasonal unemploy-ment and frictional unemployment4. Classical economists advocated wage cuts to reduce the unemployment level Which of the above statements are correct?

Macroeconomics is a branch of economics that studies how an overall economy—the market or other systems that operate on a large scale—behaves.