Macroeconomic models help clarify important questions such as the following, except:
A) Can governments reduce the severity of their economies' recessions?
B) Is a policy of manipulating interest rates more effective at mitigating short-run economic fluctuations than a policy of changing the tax rates?
C) How will OPEC manipulate and maintain the price of crude oil in the world markets?
D) Is there a trade-off between lower unemployment and lower inflation?

Question

Quizplus · Accepted Answer

Macroeconomic models are primarily used to study the behavior and performance of the overall economy, including factors such as inflation, productivity, and economic growth. The actions of OPEC are more relevant to the study of microeconomics, which focuses on the behavior of individual actors in the economy, such as firms and consumers. Therefore, option C is not a question that can be addressed using macroeconomic models.

Macroeconomic Models Help Clarify Important Questions Such as the Following