Which of the following does macroeconomics endeavor to answer?
i. What role does the government play in recessions and booms and in determining the rate of inflation?
ii. What causes an increase in the price of Exxon stock?
iii. How does a dairy farmer react to rising milk prices?
A) i only
B) ii only
C) iii only
D) i, ii, and iii
E) ii and iii

Question

Quizplus · Accepted Answer

Macroeconomics deals with the overall economic performance of a country or the world. It focuses on the study of the economy as a whole rather than individual markets or firms. Therefore, macroeconomics is concerned with questions about the role of government in controlling economic phenomena such as recessions, inflation, and booms. Questions about the behavior of individual companies or industries are part of microeconomics. Thus, options ii and iii are not part of macroeconomics.

Which of the Following Does Macroeconomics Endeavor to Answer