A basic purpose of macroeconomics is to explain:
A) Why businesses pollute.
B) How businesses choose the profit-maximizing rate of output.
C) Why the economy expands or contracts.
D) How and why countries trade with each other.

Question

Quizplus · Accepted Answer

Macroeconomics focuses on the overall performance of the economy, including the factors that drive economic growth and cause recessions or expansions. Understanding these factors is essential for policymakers and businesses to make informed decisions about economic policies and investments. A and B are more focused on microeconomics, which explores the behavior and decision-making of individual firms and consumers. D is more related to international trade, which is a topic of both macro- and microeconomics.

A Basic Purpose of Macroeconomics Is to Explain