Macroeconomics is converging with microeconomics because
A) macroeconomic relationships depend on microeconomic behavior.
B) macroeconomics studies total output.
C) government deficits and unemployment go together.
D) inflation means a general increase in prices.
E) microeconomic theories are easily testable whereas macroeconomic theories are difficult to test.
Answer: A) macroeconomic relationships depend on microeconomic behavior.
You might also like to view...
As the output produced by a firm increases, the average fixed cost:
a. continues to decline. b. initially increases, and then declines. c. quickly drops to zero. d. becomes constant. e. declines and finally becomes negative.
In a closed economy, GDP is $1000, government purchases are $200, and consumption is $700 . If the government has a budget surplus of $25, what are investment, taxes, private saving, and national saving?
If depreciation is smaller than gross investment,
A. Net investment exceeds depreciation. B. The nation's capital stock is getting smaller. C. Gross investment is negative. D. Net investment is positive.
A politician says that the government should tax behavior they want less of and subsidize behavior they want more of. This is an example of
A) cynical behavior in modern democracies. B) failing to consider the alternatives available to the government. C) a concern that people are not rational when they make decisions. D) using incentives to alter behavior.