The ultimate objective of macroeconomics is to:
A)reduce the unemployment rate in an economy.
B)stabilize the growth rate in an economy.
C)develop and test theories about how the overall economy works.
D)improve the international competitiveness of U.S.financial markets.
E)maximize the efficiency of government intervention in the marketplace.

Question

Quizplus · Accepted Answer

The ultimate objective of macroeconomics is to develop and test theories about how the overall economy works. This includes understanding how different factors such as inflation, unemployment, and economic growth interact with each other and how government policies can influence these factors. While reducing unemployment and stabilizing growth are important goals, they are not the ultimate objective of macroeconomics. Improving international competitiveness and maximizing government intervention efficiency are also not the primary goals of macroeconomics.

The Ultimate Objective of Macroeconomics Is To