Macroeconomics can best be described as the:
A. analysis of how a consumer tries to spend income.
B. study of the large aggregates of the economy or the economy as a whole.
C. analysis of how firms attempt to maximize their profits.
D. study of how supply and demand determine prices in individual markets.
Answer: B
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A university conducts a survey of students, which shows that a 10 percent tuition hike would lead to a 12 percent decrease in the enrollment
If the university wants to increase its total revenue, it should ________ tuition because the demand for education at this university is ________. A) raise; elastic B) not raise; elastic C) raise; inelastic D) not raise; inelastic
An economic growth model explains
A) how changes in the money supply affect real interest rates. B) changes in government tax policies over time. C) the growth rate of the price level over time. D) changes in real GDP per capita in the long run.
An increase in the price of labor used to produce good Y will lead to
A) an increase in the market clearing price of good Y. B) an increase in the supply of good Y. C) a decrease in the demand for good Y. D) an increase in the demand for good Y.
If the multiplier is 4, a decrease in spending equal to $80 billion will be accompanied by a decrease in GDP of
a. $480 billion. b. $320 billion. c. $240 billion. d. $84 billion. e. $48 billion.