Modern economists are increasingly using microeconomic analysis in macroeconomics because
A) microeconomic theory is more scientific.
B) aggregate outcomes stem from decisions made by individuals, business firms and government.
C) macroeconomic subjects such as inflation affect all individuals.
D) macroeconomics is older and more outdated.

Question

Quizplus · Accepted Answer

Microeconomic analysis focuses on individual decision making and behavior of firms which collectively determine aggregate outcomes in the macroeconomy. Therefore, understanding the micro level is crucial to explaining the macro level.

Modern Economists Are Increasingly Using Microeconomic Analysis in Macroeconomics Because