The ultimate objective of macroeconomics is to
A)reduce the unemployment rate
B)stabilize the economy's growth rate
C)develop and test theories about how the overall economy works
D)improve the international competitiveness of the 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. While reducing unemployment and stabilizing economic growth are important goals, they are not the ultimate objective of macroeconomics. Improving international competitiveness and maximizing government intervention are not commonly considered objectives of macroeconomics.

The Ultimate Objective of Macroeconomics Is to