For a macroeconomist, the case for aggregation is based on two principles-(1) the composition of demand and supply may not matter for some purposes and (2)
A)during fluctuations markets normally move together.
B)individual markets allocate resources efficiently.
C)inflation, unemployment, and growth never go together.
D)individual markets distribute income efficiently.

Question

Quizplus · Accepted Answer

The second principle is that during fluctuations, markets normally move together, which supports the case for aggregation. This suggests that the composition of demand and supply in individual markets may not be important when examining the overall macroeconomic performance. Aggregation allows us to focus on the overall behavior of the economy, rather than on individual markets.

For a Macroeconomist, the Case for Aggregation Is Based on Two