Describe the four major sectors in an economy according to the macroeconomic point of view.
According to macroeconomics, an economy can be divided into four major sectors
1. Household sector - This sector is the consumer sector, it is engaged in consumption of goods and services. Households spend their income on payment for goods and services purchased and payment of tax to government.
2. Production sector - This sector is engaged in production of goods and services. This sector makes payment for factor services to households, taxes to government and imports of material.
3. Government sector - This sector is engaged in activities related to taxation and subsidies.
4. External sector - This sector is engaged in export and import of goods and services